NATIONAL COLLEGE BUSINESS AND ARTS Cagadas,Maria Donna B.

CHAPTER 12 - PARTNERSHIP OPERATIONS BSA1_A

Assignment 9/17/2020

Use the following information for the next two questions:

A and B formed partnership. The partnership agreement

stipulates the following:

> Annual Salary allowance of P 80,000 for A and P20,000 for B

> 10% bonus to A after salaries but before deduction for the Bonus
> the partners share in profits and losses on a 70:30 basis.

1. The Partnership earned profit of P 1,200,000 before salary allowance

Requirements:
a. Compute for the respective shares of the partners in the profit.
b. provide the Journal entry to close the income summary account
to the partner's respective equity accounts.

2. The partnership incurred a loss of P 60,000 before salary allowance

a. Compute for the respective shares of the partners in the loss.

b. provide the Journal entry to close the income summary account
to the partner's respective equity accounts.

3. A and B formed a partnership. The partnership agreement stipulates the following:

> annual Salaries of P 100,000 for A and P 20,000 for B.

> 10% bonus to A after salaries but before deductions for bonus
and interest,
> 10% interest on the weighted average capital balance of B.
> the partners share in profits and losses equally.

The partnership earned profit of P 1,200,000

The Movements in B Capital Account are as follows:

Beg: Jan 1 Balance

April 30 Investment
May 31 Investment
Aug 1 Withdrawals
Dec 1 Investment
end balance

Requirements: Compute for the respective shares of the partners in the

profit.

Date Balance Months Acc. Balance

Jan 1 400,000 4 months 400,000
April 30 300,000 1 month 700,000
May 31 200,000 2 months 900,000
Aug 1 -100,000 4 months 800,000
Dec 1 300,000 1 month 1,100,000
TOTAL
das,Maria Donna B.

Profits to be Distributed
ary allowance A
Salary 80,000
Bonus(1.2M-80Kx10%) 112,000
R B (70:30) 691,600
Total 883,600

Loss to be Distributed
A
Salary 80,000
R B (70:30) -112,000
Total -32,000

Profits to be Distributed
ent stipulates the following: A B
Salaries 100,000 20,000
Bonus(1.2M-120Kx10%) 108,000
Interest(700,000x10%) 70,000
R B (50:50) 451,000 451,000
Total 659,000 541,000
 400,000
300,000
200,000
-100,000
300,000
1,100,000

rtners in the

Fraction Average Capital Balance

4/12 133,333
1/12 58,333
2/12 150,000
4/12 266,667
1/12 91,667
700,000
 1,200,000 Requirement B
B
20,000 100,000 Income Summary
112,000
296,400 988,000
316,400 1,200,000

-60,000 Requirement B
B
20,000 100,000 A-Capital
-48,000 -160,000 B-Capital
-28,000 -60,000

1,200,000

120,000
108,000
70,000
902,000
1,200,000
 1,200,000
A-Capital 883,600
B-Capital 316400

32,000
28,000
Income Summary 60,000