1

10
Partner's Capital and Partner's drawing

Original capital investment, additional capital investment, partner's actual share in the distribution of the net income of the business during the year

equally, arbitrary ratio, based on capital ratio, allowing salaries, interest and bonus - considered as part of the distribution of net income

When there was no agreement between the partnersers regarding the distribution of profits and losses, the share of each partner in the profits and losses
shall be in proportion to what he may have contributed.

The profits and losses shall be shared equally by the partners if there are no set proportions written down in the partnership agreement.

cotributions of the partner's in terms of capital investment, services rendered/time devoted in the management of the business, entrepreneurial ability or
partner's personal business contracts, and credit rating in the business community/

original investment, beginning capital balance, and ending capital balance.

Salary allowances are salaries provided to partners for services rendered in the conduct of a partnership business to give recognition to ability, experience
or time devoted by the partner to the business. They are recorded in the book sof the partnership as part of the distribution of profits.

A "bonus" is given to partners as incentives/speacial compensation for their entrpreneurial or managerial skills. These are recorded in the books of the
partnership
Statement ofaspartners'
part of the distribution
equity of profits.
is a statement that reports the changes that have taken place in the partner's equity during the period. Each partner is
provided a collumn heading which explains the details of the changes in ther equity account. A statemebt of Financial position is the owner's equity as
labeled Partners' Equity and multiple capital accounts. An income statement is an additional section called Distribution of Net Income or Net Loss is
included.
Exercise 3-1
1 TRUE
2 FALSE
3 TRUE
4 TRUE
5 TRUE
6 FALSE
7 FALSE
8 TRUE
9 FALSE
10 TRUE

Exercise 3-2
1 c
2 d
3 a
4 d
5 b
6 d
7 d
8 d
9 d
10 d
 JJJ Partnership
Statment of Profit or Loss
For year ended: 2019

Notes
Net Sales 1 783,500.00
Cost of Sales 2 -322,800.00
Gross Profit 460,700.00
Operating expense 3 -184,500.00
Net income 276,200.00

Income distribution:

James (1/3) 92,066.67

John (1/3) 92,066.67
Jude (1/3) 92,066.67

Notes 1: 800,000.00
Sales -12,000.00
Sales Discount -4,500.00
Sales Returns and allowances 783,500.00
Net Sales

Notes 2:
Merchandise inventory, 1/1 50,000.00
Purchases 300,000.00
purchase discount -8,200.00
net purchases 291,800.00
freight-in 7,500.00 299,300.00
cost of Goods avaiable for sale 349,300.00
merchandise inventory 12/31 -26,500.00
Cost of sales 322,800.00

Note 3
Salaries and wages 90,000.00
utilities expense 60,000.00
taxes and licenses expense 15,000.00
rent expense 10,000.00
supplies expense 9,500.00
operating expenses 184,500.00
#1
Sarmiento Caleon Total
Salaries 120,000.00 180,000.00 300,000.00
interest 40,000.00 60,000.00 100,000.00
remainder 60,000.00 40,000.00 100,000.00
total 220,000.00 280,000.00 500,000.00

#2
Sarmiento Caleon Total
Salaries 120,000.00 180,000.00 300,000.00
interest 40,000.00 60,000.00 100,000.00
remainder -60,000.00 -40,000.00 -100,000.00
total 100,000.00 200,000.00 300,000.00

#3
Sarmiento Caleon Total
Salaries 120,000.00 180,000.00 300,000.00
interest 40,000.00 60,000.00 100,000.00
remainder -300,000.00 -200,000.00 -500,000.00
total 140,000.00 40,000.00 100,000.00

#4

Sarmiento Caleon Total

Salaries 120,000.00 180,000.00 300,000.00
Interest 40,000.00 60,000.00 100,000.00
Remainders -150,000.00 -100,000.00 -250,000.00
Total 10,000.00 140,000.00 150,000.00

#5
#6

Maminta Ballesteros Abarca Total

capital lbalance before net loss 150,000.00 100,000.00 200,000.00 450,000.00
net loss -132,000.00 -99,000.00 -99,000.00 -330,000.00
ending capital balance 18,000.00 1,000.00 101,000.00 120,000.00

#7
Maminta Ballesteros Abarca Total
salary 180,000.00 70,000.00 250,000.00
interest 20,000.00 20,000.00
remainder -240,000.00 -240,000.00 -120,000.00 -600,000.00
total 60,000.00 -170,000.00 -100,000.00 -330,000.00
capital balance before net loss 150,000.00 100,000.00 200,000.00 450,000.00
ending capital balance 90,000.00 -70,000.00 100,000.00 120,000.00

#8 Maria, Capital Amount Months weighed average

Jan 1 200,000.00 12 2,400,000.00
March 1 -50,000.00 10 -500,000.00
Aug 31 100,000.00 4 400,000.00
Oct 1 -20,000.00 3 -60,000.00
Dec 1 150,000.00 1 150,000.00
Total 2,390,000.00
 Divide 12
Average 199,166.67

#9 Martha, CapitaAmount Months Weighed Average

Jan 1 400,000.00 12 4,800,000.00
Feb 1 -10,000.00 11 -110,000.00
May 31 50,000.00 7 350,000.00
Jul 1 -30,000.00 6 -180,000.00
Nov 1 100,000.00 2 200,000.00
Total 5,060,000.00
Divide 12
Average 421,666.67
 MEC Partnership
Statement of Financial Position
June 30, 2019

Assets 175,000
Cash 495,000
Other assets 670,000
Total Assets

Liabilities and Parner's Equity

Liabilities 108,000
Margaret, Capital 250,000
Elizabeth, Capital 200,000
Cecilla, Capital 112,000 562,000
Total Liabilities and Partner's Equity 670,000

Margaret Elizabeth Cecila Total

Interest 12,500.00 10,000.00 5,600.00 28,100.00
Salaries 60,000.00 60,000.00 120,000.00\
Remainder 40,760.00 30,570.00 30,570.00 101,900.00
Total 53,260.00 100,570.00 96,170.00 250,000.00
 Number of
Psalm months not Total peso
Date (2019) Capital Balance changed Peso Month month Average Capital
Jan 1 1,200,000 7 8,400,000
July 30 900,000 3 2,700,000
Nov 1 1,700,000 2 3,400
12 14,500,000 1,208,333.33

Trisha
Jan 1 550,000 3 1,650,000
Mar 31 750,000 6 4,500,000
Sep 30 450,000 3 1,350,000
12 7,500,000 625,000

Allocation of Net income

Psalm Trisha Total
Interest 131,250 93,750 275,000
Salaries 120,000 32,000 440,000
Remainder 34,000 31,000 85,000
Total 335,250 454,750 800,000

Computation of ending capital of Psalm

Psalm initial investment 1,200,000.00
Additional investment 800,000.00
drawings -300,000.00
share in profit 335,250.00
2,035,250
 Glenda Hari Total
Interest 66,666.67 100,000.00 166,666.67
Salary 100,000.00 50,000.00 150,000.00
Bonus 68,333.33 68,333.33
Remainder 246,000.00 369,000.00 615,000.00
481,000 519,000 1,000,000

Glenda's share in the net income for the year ended of december 31, 2019 would be 418,000.00
 RGem Trading Note 1:
Statement of profit or loss Sales 758,000.00
for the year ended 2019 sales discounts -11,000.00
purchase returns allowances -15,000.00
Note net sales 732,000.00
Net sales 1 732,000.00
cost of goods sold 2 -485,000.00 Note 2:
gross profit 247,500.00 Merchanside inventpry 1/1 100,000.00
operating expenses 215,800.00 Purchases 520,000.00
net income 31,200.00 Purchase returns allowances -5,000.00
purchase discounts -3,000.00
net purchases 512,000.00
Income distribution freight in 18,000.00 530,000.00
Romy Gem Total cost of good available for sale 630,000.00
Interest 3,500.00 4,000.00 7,500.00 merchandise inventory 12/31 -145,000.00
Remainder 11,850.00 11,850.00 23,700.00 cost of goods sold 485,000.00
Total 15,350.00 15,850.00 31,200.00
note 3:
acc recievable 143,000.00
allowance for doubtful accounts -5,000.00 138,000.00
notes receivable 36,700.00
trade and other recievables 174,700.00

Note 4:
Deliver equiptment 350,000.00
accumulated depreciation - delivery equipment -140,000.00
PPE - net 210,000.00

Note 5:
Accs payable 93,033.00
SSS & PhilHealth contributions payable 2,000.00
Unearned commission income 39,000.00
trade and other payables 134,033.00