ANSWERS TO LEARNING TASK#2

a) Capital Ratio Profit Share in profit

Diaz 330,000.00 (330,000 / 440,000)x 420,000.00 315,000.00
Manalo 110,000.00 (110,000 / 440,000)x 420,000.00 105,000.00
Total Capital 440,000.00 420,000.00
Account Titles Debit Credit
Income Summary 420,000.00
Diaz, Capital 315,000.00
Manalo,Capital 105,000.00

b) Same as b

b Diaz Manalo Total

8% int. on Original Capital Balance:
Diaz: 8% x 330,000 26,400.00
Manalo: 8% x 110,000 8,800.00 35,200.00
Balance to be divided in ratio of 2:3
420,000-35,200=384,800
Diaz : 384,800 x 2/5 153,920.00
Manalo: 384,800 x 3/5 230,880.00 384,800.00
Share of partners in profit 180,320.00 239,680.00 420,000.00
Account Titles Debit Credit
Income Summary 420,000.00
Diaz, Capital 180,320.00
Manalo,Capital 239,680.00

c Diaz Manalo Total

Salary Allowances 50,000.00 70,000.00 120,000.00

Balance to be divided equally
420,000-120,000=300,000
Diaz : 300,000 x 50% 150,000.00
Manalo: 300,000 x 50% 150,000.00 300,000.00
Share of partners in profit 200,000.00 220,000.00 420,000.00
Account Titles Debit Credit
Income Summary 420,000.00
Diaz, Capital 200,000.00
Manalo,Capital 220,000.00

d Diaz Manalo Total

Int. on original investments:
Diaz: 8% x 330,000 26,400.00
Manalo: 8% x 110,000 8,800.00 35,200.00
Salary Allowances 50,000.00 70,000.00 120,000.00
Balance to be divided equally:
420,000-35,200-120,000=264,800
Diaz: 264,800x 50% 132,400.00
Manalo: 264,800 x 50 % 132,400.00 264,800.00
Share of partners in profit 208,800.00 211,200.00 420,000.00
Account Titles Debit Credit
Income Summary 420,000.00
Diaz, Capital 208,800.00
Manalo,Capital 211,200.00
 Ables, Capital 275,000
Galang, Capital
Portion of the
Capital Account
Date year Ave. Capital Bal.
Bal.
unchanged
1/1/2020 200,000.00 8/12 133,333.333333
01/09/2020 275,000.00 4/12 91,666.666667
225,000.00
Total Capital 500,000

Capital Ratio Profit Share in profit

Ables 275,000.00 (275,000/500,000)x 800,000.00 440,000.00
Galang 225,000.00 (225,000/500,000)x 800,000.00 360,000.00
Total Capital 500,000.00 800,000.00

a) Capital Ratio Profit Share in profit

Abad 300,000.00 (300,000/1,000,000)x 270,000.00 81,000.00
Aglugub 250,000.00 (250,000/1,000,000)x 270,000.00 67,500.00
Onate 450,000.00 (450,000/1,000,000)x 270,000.00 121,500.00
Total Capital 1,000,000.00 270,000.00

b) Capital Ratio Loss Share in loss

Abad 300,000.00 (300,000/1,000,000)x
- 240,000.00 - 72,000.00
Aglugub 250,000.00 (250,000/1,000,000)x
- 240,000.00 - 60,000.00
Onate 450,000.00 (450,000/1,000,000)x
- 240,000.00 - 108,000.00
Total Capital 1,000,000.00 - 240,000.00