Problem #8

Rules for the Distribution of Profits or Losses

Baral and Malaluan are in partnership. On July 1, 2018, Castro joined the partnership Profit sharing arrangements are:

6 months to 6 months to
June 30,2018 Dec 31,2018
Salaries Baral P15000 P25000
Balance to be Divided: Baral 60% 40%
Malaluan 40% 40%
Castro - 20%
The partnership profit for the year ended Dec 31,2018 was P350000 accruing evenly over the year.
Required:
Prepare the profit distribution schedule.
Baral Malaluan Castro Total
Salaries 6 months 15000.00 15000.00
6 months 25000.00 25000.00
Balance to be Divided: 96000.00 64000.00 160000.00
60000.00 60000.00 30000.00 150000.00
Profit sharing 196000.00 124000.00 30000.00 350000.00

6 months 111000.00 64000.00

6 months 85000.00 60000.00 30000.00