Reference no: EM132907195
Questions -
Q1. Emil, a senior partner in an accounting firm, has a profit share of 25% and 30% interest in 20x9. During 20x9, Mang Emil withdrew P260,000 against his capital but invested property with a fair value of P50,000. If Mang Emil's ending capital is P120,000 lesser than his capital beginning, how much is the partnership net income or net loss for 20x9?
a. P360,000
b. P300,000
c. P480,000
d. P400,000
Q2. The partners, C and D, share profits 3:2. However, C is to receive a yearly bonus of 20% of the profits, in addition to his profit share. The partnership made a net income for the year of P960,000 before the bonus. Assuming C's bonus iscomputed on profit after deducting said bonus, how much profit share will D receive?
a. P307,200
b.P320,000
c.P640,000
d.P160,000
Q3. The partnership agreement of Vannah, Wanine, and Ully provides that profits are to be divided as follows:
Ully receives a salary of P24,000 and Wanine receives a salary of P18,000 for time spent in the business.
All partners receive 10% interest on average capital balances.
Remaining profits and losses are divided equally among the three partners.
On January 1, 20x2 the capital balances were Vannah, P200,000; Wanine, P160,000; and Ully, P150,000. Vannah invested an additional P40,000 on July 1 and withdrew P40,000 on October 1. Ully and Wanine had drawings of P18,000 each during the year.
If the net income for the year was P28,000, how much must be the share of Ully?
a. P16,400
b. P17,000
c. P17,400
d. P12,000
Q4. Kathy and Eddie formed the K & E partnership several years ago. Capital account balances on January 1,20x5 were: Kathy, P993,500; and Eddie, P536,500.
The partnership agreement provides Kathy with an annual salary of P20,000 plus a bonus of 5% of partnership net income for managing the business. Eddie is provided an annual salary of P30,000 with no bonus. The remainder is shared evenly. Partnership net income for 20x5 was P60,000. Eddie and Kathy each invested an additional P10,000 during the year to finance a special purchase. Year-end drawing account balances were P30,000 for Kathy and P20,000 for Eddie. Eddie's capital balances as of December 31, 20x5 should be:
a. P 560,000
b. P1,000,000
c. P998,750
d. P561,250