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  • ATIENZA Operations

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    Nicholas Andrew Atienza
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    The document outlines how net income or loss from a partnership is allocated to partners P and Q. When the partnership had a net income of P360,000, P's total allocated income was P164,560 and Q's was P195,440. When net income was P240,000, P received P98,320 and Q received P141,680. When there was a net loss of P40,000, P's loss allocation was P33,500 and Q's was P6,500. Income or loss remaining after salaries and interest is allocated 60% to P and 40% to Q.

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    The document outlines how net income or loss from a partnership is allocated to partners P and Q. When the partnership had a net income of P360,000, P's total allocated income was P164,560 and Q's was P195,440. When net income was P240,000, P received P98,320 and Q received P141,680. When there was a net loss of P40,000, P's loss allocation was P33,500 and Q's was P6,500. Income or loss remaining after salaries and interest is allocated 60% to P and 40% to Q.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    6 views3 pages

    ATIENZA Operations

    Uploaded by

    Nicholas Andrew Atienza
    The document outlines how net income or loss from a partnership is allocated to partners P and Q. When the partnership had a net income of P360,000, P's total allocated income was P164,560 and Q's was P195,440. When net income was P240,000, P received P98,320 and Q received P141,680. When there was a net loss of P40,000, P's loss allocation was P33,500 and Q's was P6,500. Income or loss remaining after salaries and interest is allocated 60% to P and 40% to Q.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 3

    PARTNERSHIP OPERATIONS

    ALLOCATION OF INCOME OR LOSS OF PARTNERSHIP TO PARTNERS

    1. Partnership net income is P360,000

    P
    Salary 80,000.00
    Interest (Average Capital x 7%) 9,800.00
    Bonus (360,000x6% for P, 12% for Q) 21,600.00
    Sub Total 111,400.00
    Remainder (60% for P, 40% for Q) 53,160.00
    Total Net Income Allocated 164,560.00

    2. Partnership net income is P240,000

    P
    Salary 80,000.00
    Interest (Average Capital x 7%) 9,800.00
    Bonus (240,000x6% for P, 12% for Q) 14,400.00
    Sub Total 104,200.00
    Remainder (60% for P, 40% for Q) (5,880.00)
    Total Net Income Allocated 98,320.00

    3. Partnership net loss is P40,000

    P
    Salary 80,000.00
    Interest (Average Capital x 7%) 9,800.00
    Sub Total 89,800.00
    Remainder (60% for P, 40% for Q) (123,300.00)
    Total Net Income Allocated (33,500.00)
    TO PARTNERS

    Q TOTAL Computations:
    100,000.00 180,000.00 Remainder:
    16,800.00 26,600.00 Net Income
    43,200.00 64,800.00 Less: Sub Total
    160,000.00 271,400.00 Remainder
    35,440.00 88,600.00
    195,440.00 360,000.00

    Q TOTAL Computations:
    100,000.00 180,000.00 Remainder:
    16,800.00 26,600.00 Net Income
    28,800.00 43,200.00 Less: Sub Total
    145,600.00 249,800.00 Remainder
    (3,920.00) (9,800.00)
    141,680.00 240,000.00

    Q TOTAL Computations:
    100,000.00 180,000.00 Remainder:
    16,800.00 26,600.00 Net loss
    116,800.00 206,600.00 Less: Sub Total
    (123,300.00) (246,600.00) Remainder
    (6,500.00) (40,000.00)
    360,000.00
    271,400.00
    88,600.00

    240,000.00
    (249,800.00)
    (9,800.00)

    (40,000.00)
    206,600.00
    (246,600.00)

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