Reference no: EM132973126
Questions -
Q1. Ei and Bi are partners who shares profits and losses in the ratio of 60:40, respectively. Ei's salary is P60,000 and P30,000 for Bi. The partners are also paid interest on their average capital balances. In 2014, Ei received P30,000 of interest and Bi, P12,000. The profit and loss allocation is determined after deductions for the salary and interest payments. If Bi's share in the residual profit (balance after deducting salaries and interest) was P60,000 in 2014, what was the total partnership profit?
a. P345,000
b. P282,000
c. P387,000
d. P192,000
Q2. The original capital balances of K and L are P250,000 and P150,000 at the beginning of the year. K made regular drawings of P18,000 and L of P12,000. These are normal drawings made by the partners. Net income for the year was P200,000. How much will be the share of K in the net income?
a. P100,000
b. P125,405
c. P107,000
d. P125,000
Q3. The original capital balances of K and L are P250,000 and P150,000 at the beginning of the year. K made regular drawings of P18,000 and L of P12,000. These are normal drawings made by the partners. Net income for the year was P200,000. The statement of partners' equity at the end of the year will show K's capital as:
a. P357,000
b. P250,000
c. P332,000
d. P375,000
Q4. Under the partnership agreement, Si is to receive a bonus of 20% of net income after bonus and the remainder is to be distributed as follows: 35% each to Si and Di, and 30% to Wee. If the partnership's net loss is P3,180,000, what is the amount of Si's share?
a. P927,000
b. P1,457,500
c. P1,325,000
d. P1,113,000