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Afar Solution

The document shows the profit allocation for partner A in a partnership. It details that A earned Rs. 30,000 in interest on capital, Rs. 160,000 in salary, and Rs. 150,000 bonus. A's equal share in remaining profit was Rs. 200,000, bringing their total profit share to Rs. 540,000. The partnership profit for the year was Rs. 1,050,000, of which Rs. 300,000 was used for interest and salary. The remaining Rs. 750,000 was subject to A's 20% bonus of Rs. 150,000.

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148 views

Afar Solution

The document shows the profit allocation for partner A in a partnership. It details that A earned Rs. 30,000 in interest on capital, Rs. 160,000 in salary, and Rs. 150,000 bonus. A's equal share in remaining profit was Rs. 200,000, bringing their total profit share to Rs. 540,000. The partnership profit for the year was Rs. 1,050,000, of which Rs. 300,000 was used for interest and salary. The remaining Rs. 750,000 was subject to A's 20% bonus of Rs. 150,000.

Uploaded by

Tk Kim
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Interest on capital (10% x 300,000) 30,000

Salary (40,000 x 4) 160,000


Bonus to A 150,000
Equal share in remaining profit (600,000 / 3) 200,000
Total share of A in partnership profit 540,000

Partnership profit for the year ended December 31, 2018 1,050,000
Less: Total interest and salary (100,000 + 200,000) (300,000)
Net profit after salary and interest but before bonus to managing partner 750,000
Multiply by Bonus percentage x 20%
Bonus to A as managing partner 150,000

Number 7 Answer B

Interest on capital (10% x 500,000) 50,000


Salary (10,000 x 4) 40,000
Equal share in remaining profit 200,000
Total share of B in partnership profit 290,000

Number 8 Answer B

Capital Balance of B before the admission of D 800,000


Less: Capital to be transferred to D (P800,000 x 40%) ( 320,000)
Capital Balance of B after the admission of D 480,000

Number 9 Answer D

Capital Balance of A before the retirement of C 500,000


Add: Share of A in asset revaluation (250,000 x 10%) 25,000
Capital Balance of A after the retirement of C 525,000

Cash received by C upon retirement 300,000


Capital of C before retirement 200,000
Share of C asset revaluation 150,000

Total asset revaluation (150,000 / 60%) 250,000

Number 10 Answer C

Capital Balance of B before the retirement of C 300,000


Add: Share of B from Bonus given by C (P20,000 x 4/5) 16,000
Capital Balance of B after the retirement of C 316,000
Capital balance of C before retirement 100,000
Cash received by C upon retirement 80,000
Bonus given by C 20,000

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