Set A

Fundamentals of Accounting P2
(ABM 4)

Output # 1

Name:_________________________________ Program:_____________________ Date:________

I. Solving problems.

A. Using the following data, computes for the amount of profits distributed for each partner of CharlieBear
Partnership. Profits for the year 2019 amounted to P 1,200,000.00. Show your solution.
MR. CHARLIE MS. BEAR
Original Capital Contributions (2018) 525,000.00 600,000.00
Capital Balances
Capital Balance, January 1, 2019 675,000.00 720,000.00
Addt’l Investment, February 28, 2019   55,000.00
Addt’l Investment, April 30,2019   60,000.00
Addt’l Investment, June 30, 2019 150,000.00  
Withdrawal, August 1, 2019 25,000.00 20,000.00
Withdrawal, September 30, 2019   5,000.00
Addt’l Investment, October 30, 2019 45,000.00 45,000.00
Withdrawal,November 30, 2019 10,000.00 10,000.00
Capital Balance, December 31, 2019 835,000.00 845,000.00

1. If partners profit is divided equally

2. If the partners agree to divide the profit with 45% for Mr. Charlie and 55% for MS. Bear.
3. If the partners agree to divide the profit using their original capital contribution.
4. If the partners agree to divide the profit using their beginning capital balances.
5. If the partners agree to divide the profit using their ending capital balances.
6. If the partners agree to divide the profit using their current year’s average capital balances.
7. If the partners agree to divide the profit based on weighted average capital balances.
8. If the partners agree to divide the profits with the following considerations:
a. Weighted average capital balance are entitled to a 12% interest per year
b. Cash balance to be distributed 45% for Mr. Charlie and 55% for Ms. Bear.
9. If the partners agree to divide the profits with the following considerations:
a. Bear is entitled of 8% interest per year on the excess of his weighted average capital balance
over Charlie.
b. Cash balance to be distributed 45% for Mr. Charlie and 55% for Ms. Bear.
10. If the partners agree to divide the profits with the following considerations:
a. Agreed that a salary of P 4,500 per month be given to each partner. Assume 12 months
period.
b. Bear is entitled of 8% interest per year on the excess of his weighted average capital balance
over Charlie.
c. Cash balance to be distributed 45% for Mr. Charlie and 55% for Ms. Bear.
11. If the partners agree to divide the profits with the following considerations:
a. Agreed that a salary of P 4,500 per month be given to each partner. Assume 12 months
period.
b. Bear is entitled of 8% interest per year on the excess of his weighted average capital balance
over Charlie.
c. 10% bonus on NI before salaries, before interest on capital and before bonus to Charlie,
managing partner.
d. Cash balance to be distributed 45% for Mr. Charlie and 55% for Ms. Bear.
12. If the partners agree to divide the profits with the following considerations:
 Set A
a. Agreed that a salary of P 4,500 per month be given to each partner. Assume 12 months
period.
b. Bear is entitled of 8% interest per year on the excess of his weighted average capital balance
over Charlie.
c. 10% bonus on NI before salaries, before interest on capital and before bonus to Charlie,
managing partner
d. Cash balance to be distributed 45% for Mr. Charlie and 55% for Ms. Bear.
13. If the partners agree to divide the profits with the following considerations:
a. Agreed that a salary of P 4,500 per month be given to each partner. Assume 12 months
period.
b. Bear is entitled of 8% interest per year on the excess of his weighted average capital balance
over Charlie.
c. 10% bonus on NI before salaries, before interest on capital and bonus to Charlie, managing
partner.
d. Cash balance to be distributed 45% for Mr. Charlie and 55% for Ms. Bear.
14.