11.

A Marinette Adrien Total

Interest ₱20,000 ₱12,000 ₱32,000
Annual Salary 36,000 − 36,000
Remainder 60,000 40,000 100,000
Total ₱116,000 ₱52,000 ₱168,000

12. D Decrease in capital ₱60,000

Drawings -130,000
Contribution 25,000
Profit share 45,000
Net Income (45,000/30) ₱150,000

13. A AA BB CC Total
Interest on Average Capital:
AA: ₱360,000 X 10% ₱36,000
BB: ₱180,000 X 10% ₱18,000
CC: ₱120,000 X 10% ₱12,000 ₱66,000
Salaries 90,000 60,000 150,000
Balance or Residual (Equally): -105,000 -105,000 -105,000 -315,000
Increase/(Decrease) ₱21,000 ₱ (87,000) ₱ (3,000) ₱ (99,000)

14. B Anya Damian Total

Interest ₱3,200 ₱3,600 ₱6,800
Salaries 15,000 7,500 22,500
Remainder -11,580 -7,720 -19,300
 Total ₱6,620 ₱3,380 ₱10,000

15.C The weighted-average capital is computed as follows:

January 1 – July 1 : ₱420,000 x 6 months------------------------

₱2,520,000
July 1 – August 1 : ₱540,000 x 1 months------------------------ 540,000
August 1 – December 1 : ₱495,000 x 5 months------------------------ 2,475,000
₱5,535,000
Divided by:-------------------------------------------------------------------------- 12 months
Weighted-average capital------------------------------------------------------- P461,250
Multiply by: interest rate per year-------------------------------------------- 10%
Amount of interest per year---------------------------------------------------- ₱46,125

16. A Tiger Woods Total

Salaries ₱64,000 ₱100,000 ₱164,000
Interest 24,000 30,000 54,000
Bonus [(₱360,000-₱54,000)x25%] 76,500 − 76,500
Remainder 19,650 45,850 65,500
Total ₱184,150 ₱175,850 ₱360,000

17. C LL MM NN Total
Interest ₱2,000 ₱1,250 ₱750 ₱4,000
Annual Salary 8,500 − − 8,500
Additional profit to give LL, ₱20,000 9,500 5,700 3,800 19,000
Additional profit to give mm, ₱14,000 − 7,050 − 7,050
Total ₱20,000 ₱14,000 ₱4,550 ₱38,550
18. D Allan Michael Total
Interest (A)− [(₱40,000 + 60,000)/2] X 10% ₱5,000
Interest (M)− [(₱60,000 + 70,000)/2] X 10% ₱6,500 ₱11,500
Remainder ₱14,000 ₱14,000 ₱28,000
Total ₱19,000 ₱20,500 ₱39,500

19. C Total profit share of Pedro ₱200,000

Less: Salary to Pedro ₱50,000
Interest 20,000 70,000
Share in the balance (40%) ₱130,000

Net profit after salary and interest (₱130,000/40%) ₱325,000

Add: Total salaries ₱150,000
Total interest 70,000 220,000
Total Partnership Income ₱545,000

20. A Ken Len Mon Total

Capital balances, 1/1/2023 ₱100,000 ₱100,000 ₱100,000 ₱300,000
Additional investment, 2023 40,000 40,000
Capital withdrawal, 2023 -20,000 -20,000
Balances 80,000 140,000 100,000 320,000
Profit distribution, 2023 (Schedule 1)
Salary 60,000 60,000
Beginning balance, capital ratio 20,000 20,000 20,000 60,000
Capital balances, 1/1/2024 100,000 160,000 180,000 440,000
Capital withdrawal, 2024 -20,000 -40,000 -60,000
Balances 80,000 120,000 180,000 380,000
Profit distribution, 2024 (Schedule 1)
Salary 60,000 60,000
Beginning balance, capital ratio 13,636 21,818 24,546 60,000
Capital balances, 12/31/2024 ₱93,636 ₱141,818 ₱264,546 ₱500,000

**Schedule 1 − Computation of net profit:

Total capital, 2023 (₱647,500 - ₱147,500) ₱500,000
Total capital, 2024 (₱300,000 + ₱40,000 - ₱80,000) 260,000
Total profit for 2 years ₱240,000
Net profit per year (₱240,000/2) ₱120,000