CASE 1

Luka Toh 40 000 / 110 000 = 36.36% 44 000 x 36.36363636 = 16 000

Care Moh 70 000 / 110 000 = 63.63% 70 000 x 63.63636363 = 28 000

Journal Entry:

Luka Toh 16 000

Care Moh 28 000

Income Summary 44 000

To record the division of loss

Lukah Toh 40 000 / 110 000 = 36.36% 66 000 x 36.36363636 = 24 000

Care Moh 70 000 / 110 000 = 63.63% 66 000 x 63.63636363 = 42 000

Journal Entry:

Income Summary 66 000

Lukah Toh 24 000

Care Moh 42 000

To record the division of profit

Case 2
Fernan, Capital

Date Capital Accnt. Balances Portion of the year Ave. Capital Balance

January 7 80 000 3/12 200 000

April 14 960 000 5/12 400 000

September 1 840 000 2/12 140 000

November 1 900 000 2/12 150 000

Total Average Capital Balance: 890 000

Ramil, Capital

Date Capital Accnt. Balances Portion of the year Ave. Capital Balance

January 7 1 200 000 2/12 200 000

March 3 1 020 000 4/12 340 000

July 3 1 160 000 3/12 290 00

September 28 1 260 000 3/12 315 000

Total Average Capital Balance: 1 145 000

Win, Capital

Date Capital Accnt. Balances Portion of the year Ave. Capital Balance

January 7 600 000 5/12 250 000

June 12 810 000 5/12 337 500

November 2 735 000 1/12 61 250

December 5 627 000 1/12 52 250

December 20 967 000 0/12 0

Total Average Capital Balance: 701 000

Bern, Capital

Date Capital Accnt. Balances Portion of the year Ave. Capital Balance

January 7 1 500 000 2/12 250 000

February 21 1 560 000 3/12 390 000

May 16 1 360 000 1/12 113 333.33

July 13 1 500 000 5/12 625 000

December 12 950 000 1/12 79 166.67

Total Average Capital Balance: 1 457 500

Fernan Ramil Win Bern Profit Total

905 000
Average 890 000 1 145 000 701 000 1 457 500
Capital
Interest 80 1000 103 050 63 090 131 175 377 415
Salary 0 0 0 300 000 300 000
Bonus after 0 0 105 517 0 105 517
interest but
before
salary
Bonus after 24 413.6 0 0 0 24 413.6
interest,
salary and
bonuses

Computation of Interest: Computation of bonus after interest but before salary:

Fernan: 890 000 x 9% = 80 100 905 000 – 377 415 = 527 585

Ramil: 1 145 000 x 9% = 103 050 527 585 x 20% = 105 517

Win: 701 00 x 9% = 63 090

Bern: 1 457 5000 x 9% = 131 175

Computation of Bonus after interest, salary and bonuses:

( 905 000 – 300 000 – 377 415 – 105 517) = 122 068

122 068 / (1 + 25%) = 97 654.4

97 654.4 x 25% = 24 413.6

 Fernan Ramil Win Bern Profit Total
905 000
Average 890 000 1 145 000 701 000 1 457 500
Capital
Interest 80 1000 103 050 63 090 131 175 377 415
Salary 0 0 0 300 000 300 000
Bonus after 0 0 105 517 0 105 517
interest but
before
salary
Bonus after 24 413.6 0 0 0 24 413.6
interest,
salary and
bonuses
Beg. Capital 800 000 1 200 000 600 000 1 500 000 4 100 000
Percentage 0.1951219512 0.2926829268 0.1463414634 0.3658536585
Share on 19 054.42 28 581.78 14 290.84 35 727.16 97 654.4
Remaining
Profit
All in all 1 013 568.02 1 276 633.44 883 893.84 1 924 492.16
total