Direction: Answer the following questions in
problem 3: [6,7,8]
Extracted text: er 2 Partnership Operations 49 20% bonus on profit before salaries and interest but after bonus to B. 12% annual interest on the beginning capital of A. Balance equally. ed The monthly salaries are withdrawn by the partners at each month-end. The partnership earned profit of P420,000 during the period before deductions for bonus and interest. nd Requirement: Compute for the ending balances of each of the partners' capital accounts. ip
Extracted text: Chapter 2 48 6. The partnership agreement of A and B states the following: Monthly salary of P10,000 for A. 20% bonus to A, before deductions for salary, interest, and bonus. average capital balance. Co 10% interest on the weighted average capital of B. Balance is shared equally. Gparioment purtners capital B's weighted average capital balance is P200,000. The partnership reported profit of P60,000 for the year, net of salaries, bonus and PROBLEM 4: M LA and B t stipulates Annual sat The partne interest. Requirement: Compute for A's share in the profit. 7. A and B's partnership started operations on July 1, 20x1. The partnership agreement requires A and B to maintain average capital balances of P200,000 and P300,000, respectively. A 10% annual interest is to be computed on any excess or deficiency. Any remaining amount of profit or loss is to be shared on a 60:40 ratio. The partnership incurred loss of P120,000 in 20x1. The average capital balances in 20x1 were P240,000 for A and P220,000 for B. Daring the pa much was the 2. 72,00 6. 68,00 2 A,B anm ratio of Requirement: Compute for the respective shares of the partners in slary C the sala the loss. 8. A and B formed a partnership and began operations on March 1, 20x1. A invested P200,000 cash, while B invested equipment with a book value of P600,000 and a fair value of P360,000. On August 31, 20xl, A invested additional cash of P40,000. The partnership agreement stipulates the following: Monthly salary allowances of P4,000 and P20,.000 to A and b: respectively, recognized as expenses. amed 2 214 b. 196 The 3. ballor 126 aranual in Ralence erpuuali The mandhly sal bernd The pemd before de