PROBLEM 13. Pixel and Quiel are partners operating a chain of retail stores. The partnership agreement provides for the following: Pixel Quiel Salaries P5,000 P2,500 Interest on capital balance 10% 10% Bonus 20% of net income before interest but after bonus and salaries Remainder 30% 70% The income summary account for the year shows a credit balance of P25,500 before any deductions. Average capital balances for Pixel and Quiel are P25,000 and P37,500 respectively. 25) The share of Pixel in the P25,500 net income would be:

PROBLEM 13. Pixel and Quiel are partners operating a chain of retail stores. The partnership agreement provides for the following: Pixel Quiel Salaries P5,000 P2,500 Interest on capital balance 10% 10% Bonus 20% of net income before interest but after bonus and salaries Remainder 30% 70% The income summary account for the year shows a credit balance of P25,500 before any deductions. Average capital balances for Pixel and Quiel are P25,000 and P37,500 respectively. 25) The share of Pixel in the P25,500 net income would be:

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 3SEB

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On January 1. 20x7 Jorgia, Lizza. Miles, Nice formed a partnership. At the time of formation, the partners agreed to the following amount of investment, division of profits and losses, and drawings: Jorgia Lizza Miles Nice Initial Investment P36,000 P56,000 P60,000 P40.000 Profit and Loss Ratio 15% 30% 35% 20% Annual Withdrawals 20x7 P14,400 P14.400 P14,400 P14,400 20x8 19.200 19.200 19.200 19 200 20x9 14,600 14,600 30.000 30.000 The net income for 20x7, 20x8 and 20x9 armounts to P130,000, P156,000, P172.000 respectively. AL the end of 20x9. Miles was consented to withdraw from the partrership. 1. Compute for the capilal of Rice if Miles sold her interest to Rice with the consent of other partners at 10% more than her capilal balance. 2. Compute for the bonus to Nice if Miles sold her interest to the partnership at 10% less than her capital interest.
YES Partnership started operations on January 1, 201 balances : with the following capital Yves P88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions : Yves will be given an annual salary of P16,000 and Serge P8,000 All partners will be given 10% interest on beginning capital balances every year Bonus of 20% of Net Income will be given to Yves The balance of the profit , or the loss, will be divided on a 5 :2:3 to Yves , Ernest and Serge, respectively . B. Assuming that the company resulted in a profit 150.000 in 2016 : 1. What is the share of Yves in Net Profit or Net Lose for 2016? 2. What is the share of Ernest in Net Profit or Net Loss for 2016 ? 3. What is the Serge in Net Profit or Net Loss for 2016?
YES Partnership started operations on January 1, 201 balances : with the following capital Yves P88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions : Yves will be given an annual salary of P16,000 and Serge P8,000 All partners will be given 10% interest on beginning capital balances every year Bonus of 20% of Net Income will be given to Yves The balance of the profit , or the loss, will be divided on a 5 :2:3 to Yves , Ernest and Serge, respectively . A. Assuming that the company resulted in a net loss of 16,000 in 2016 1. What is the share of Yves in Net Profit or Net Loss for 2016? 2. What is the share of Ernest in Net Profit or Net Loss for 2016? 3. What is the share of share in Net Profit or Net Loss for 2016? B. Assuming that the company resulted in a profit of 24.200 in 2016 : 1. What is the share of Yves in Net Profit or Net Lose for 2016? 2. What is the share of Ernest in Net Profit or Net Loss for 2016 ? 3. What is the Serge in Net…
Sophia and Anna are partners operating a chain of retail stores. The partnership agreement provides for the following: · Annual salaries to Sophia of P40,000 and P30,000 to Anna. · 12% interest on average capital balances. · Bonus to Sophia of 20% of net income after allowance for salaries, interest, and bonus. · Residual income in the ratio 25% to Sophia and 75% to Anna. The Income Summary account for year shows a credit balance of P244,000 before any allocations. Average capital balances for Sophia and Anna are P100,000 and P150,000, respectively. How much must be the share of Sophia on the partnership net income?
15. Abel and Badel are partners operating a grocery store. Their partnership requires that profits and losses be divided as folows: Abel Badel Salaries P105,000 None Commission on gross sales None 2% Interest on average capital balances 8% 8% 20% of net income before commission and Bonuses interest but after salaries and bonus Remainder 60% 40% Gross sales for 2020 were P6,562,500. Income before deducting amounts for salary, commission, interest, and bonus were P1,050,000. Average capital balances of Abel and Badel are P2,100,000 and P2,205,000 respectively. What are the profit shares of Abel and Badel respectively? a. P617,610 and P432,390 b. P186,165 and P124,740 C. P580,860 and P469,140 d. P616,665 and P433,335
Q.1 S, K and P are in business in Partnership as Machinery Manufacturers. They share Profits as 4:3:3 after allowing for interest at 5% on the balances of their capital accounts at the beginning of each year and after charging Partners salaries at the rate of RO 8,000; RO 6,400; RO 5,600 per annum respectively. They employ a sales manager who is paid a salary of RO 4,800 per annum plus one percent commission on total sales. The following Balances was extracted on 31st December 2020. Capital Accounts S 23,200 13,600 12,800 6,440 300,000 13,600 K Cash at Bank Purchase of Raw Material Discount Dr. Rent and Insurance 9,240 Sundry Creditors Factory Expenses Office Expenses Sundry Debtors 25,200 38,000 2,400 12,800 6,400 600 Furniture Telephone Sales 520,000 23,600 96,000 Opening stock of Raw Material Carriage inwards Salaries (Including sales manager 14,400 salary) Repairs to Buildings Bad debts 800 Carriage Outwards Vehicle 3,200 3,600 5,200 Drawings 9,600 8,800 8,400 4,800 4,400 5,600…
3.11 Apple and Green started a business as a partnership on January 1, 200A. Apple contributed P 36,000 and Green contributed P 30,000. It was agreed that earnings after interest and salary allowances would be divided in the ratio of 2/3 and 1/3 to Apple and to Green, respectively. Interest of 4% per annum on the beginning capital balances will be allowed. Earnings, salaries, and withdrawals for 200OA and 200B were: Earnings before Interest and Salaries Apple P 11,590 24,600 Salaries paid Green Р6,000 6,000 Withdrawals Apple P 6,140 P 4,850 7,152 Green P 4,000 4,000 200A 200B 4,048 REQUIRED: Statement of Partners' Equity for both years.
HRM Partnership begins its first year of operations with the following capital balances A, capital P32,000 C, capital 16,000 According to the partnership agreement, all profits will be distributed as follows • A monthly salary of P 3,200 and P 1,600 to A & C respectively. • The partners will be allowed with interest equal to 10% of the capital balances of the first day of the year. A bonus of 10% of the net income after bonus to A. • The remainder will be divided on the basis of the beginning capital for the first year and equally for the second year Each partner is allowed to withdraw up to P 1,600 a year. Assume that the net loss for the first year of operations ions is P2,400 with net income of P 8,800 in the following year. Assume further that each partner withdraws the maximum amount from the business each period. The capital balances of A at the end of the second year is The capital balances of B at the end of the second year is
Sophia and Anna are partners operating a chain of retail stores. The partnership agreement provides for the following: · Annual salaries to Sophia of P40,000 and P30,000 to Anna. · 12% interest on average capital balances. · Bonus to Sophia of 20% of net income before salaries and bonus but after interest on capital. · Residual income in the ratio 25% to Sophia and 75% to Anna. The Income Summary account for year 2018 shows a credit balance of P244,000 before any allocations. Average capital balances for Sophia and Anna are P100,000 and P150,000, respectively. How much must be the share of Sophia on the partnership net income?
Villanueva and Mulles are partners sharing profits in the ratio 3:2. On Jan. 1, 2018, Lucena joined the partnership and the new profit sharing ratio is as follows: Villanueva 40%, Mulles 30% and Lucena 30%. Profits for the year ended June 30,2018 were: 6 months ended Dec. 31, 2017 P300,0006 months ended June 30, 2018 P450,000 An irrecoverable debt of P50,000 was written off in the six months to June 30 in computing the P450,000 profit. It was agreed that this expense should be borne by Villanueva and Mulles only. What is Villanueva’s total profit share for the year ended June 30, 2018?
Paul and Carl are partners in a business. The partnership agreement included the following: Interest on drawings is to be charged at 15% Interest on capital is to be charged 10% Paul is to be paid a salary of $6,500 Profit or loss is to be shared in the same ratio as their capital The following trial balance was extracted after the calculation of the net income for the year ended December 31,2021 Debit Credit $ $ Net profit for the year 42,000 cash 8,700 bank 58,000 creditors 14,000 debtors 34,000 fixtures 100,000 Provision for depreciation on fixtures 10,000 building 250,000 Provision for depreciation on building 50,000 Loan 220,000 Capital Paul 200,000 Carl 50,000 Drawings Paul 15,000 Carl 10,000 Current Account Paul 8,400 Carl 2,800 Motor vehicle 160,000…
19 AA and BB are partners with capital accounts that had the following transactions during 2022: AA BB Debit Credit Debit Credit Beginning balance, January 1 P270,000 P280,000 February 28 P80,000 March 1 120,000 April 30 160,000 June 1 P100,000 August 1 140,000 September 30 40,000 October 31 40,000 The partnership agreement provides for the following: Interest of 9% is to be provided to AA Salaries of P4,000 is to be given to BB per quarter A bonus of 25% is to be given to AA based on net income after interest and salaries Remaining balance is to be allocated on a ratio of 40:60. The income summary account has a credit balance of P1,050,000 before profit distribution. BB has a Drawing account amounting to P40,000 which is a withdrawal made by BB in anticipation of future profits on July 1, 2022. How much is the…