Afar 02 P'ship Operation Quiz

PROBLEM 1
Caloocan and Valenzuela formed a partnership on January 1, 2019 by contributing P800,000 and
P1,200,000, respectively. As of January 1, 2020, their partnership was P900,000 and P1,100,000,
respectively.
Situations:
A. No profit-sharing agreement
B. No loss-sharing agreement
C. Profit is divided equally
D. Loss is divided 30:70, respectively
Required:
Compute the share of Caloocan and Valenzuela assuming:
P400,000 P (400,000)
Caloocan Valenzuela Caloocan Valenzuela
A and B 1. 2. 3. 4.
B and C 5. 6. 7. 8.
A and D 9. 10. 11. 12.
C and D 13. 14. 15. 16.
C and D with guaranteed P250,000 17. 18. 19. 20.
minimum profit sharing to Valenzuela
PROBLEM 2
Paola and Geraldine are partners in a gold trading business. Their capital accounts in the Bulacan
Partnership for the year were as follows:
Paola Geraldine
January 1, balance P450,000 P600,000
March 1, withdrawal - 120,000
May 1, investment 240,000 -
June 1, investment - 90,000

June 30, drawings 80,000 100,000
October 1, withdrawal 180,000 -
December 1, investment - 60,000

December 31, investment 50,000 10,000
The partnership agreement provides for the following distribution of profit or losses:
 Interest of 8% on weighted average capital balances.
 Paola receives a salary of P150,000 and a bonus of 3% of income after all bonuses.
 Geraldine receives a salary of P100,000 and a bonus of 2% of income after all bonuses.
 Profit is divided in a 6:4 ratio by Paola and Geraldine, respectively. Loss is divided equally by
both.
Income summary has a credit amounting to P315,000.

Required:
21.Compute the weighted average capital of Paola
22.Compute the weighted average capital of Geraldine
23.Compute the interest of Paola
24.Compute the interest of Geraldine
25. Compute the income distribution of Paola
26. Compute the income distribution of Geraldine
PROBLEM 3
X, Y, Z are partners in a trading business. Interest to be credited to each partner is 10%. Their
capital accounts in Triple Partnership for the year as follows:
X Y Z
April 1, investment P145,000 P260,000 P250,000
May 1, withdrawal - 120,000 -
June 1, investment - - 100,000
August 1, investment 120,000 - -
October 1, investment - 90,000 -
December 1, withdrawal - - 30,000
27. Compute the weighted average capital of X

28. Compute the weighted average capital of Y
29. Compute the weighted average capital of Z
30. Compute the interest of X
31. Compute the interest of Y
32. Compute the interest of Z
PROBLEM 4
Pulilan and Apalit shares profit and loss equally after providing for annual salaries of P150,000 and
P180,000, respectively, and a 10% bonus on net income after salaries and bonus to Pulilan. The
profit or loss statement of the partnership for whole year is shown below:
Sales P6,000,000
Cost of sales 3,000,000
Gross profit P3,000,000
Expenses 2,450,000
Net profit P550,000
33.Compute the bonus if the expense is exclusive of bonus and salaries

34. Compute the bonus if the expense is inclusive of salaries
35. Compute the bonus if the expense is inclusive of bonus and salaries
PROBLEM 5
On January 2, Simon and Fernando formed a partnership to be located in Lagao. Simon contributed
capital of P175,000 and Fernando, P25,000. They agreed to share profits and losses 80% and 20%,
respectively. Fernando is the general manager and works in the partnership full time and is given a
salary of P5,000 a month, an interest of 5% of the beginning capital (of both partner) and a bonus of
15% of net income before salary, interest and bonus. Salaries, interest and bonus is regarded as an
expense of the partnership.
The profit or loss statement of the partnership for the year ended December 31 is as follows:
Net sales P875,000
Cost of sales 700,000
Gross profit P175,000
Expenses 143,000
Net profit P32,000
36. Compute the amount of bonus to Fernando

37. Compute the share in net income of Simon
38. Compute the share in net income of Fernando
PROBLEM 6
Cordon Blue, a partnership was formed on January 1, with four partners C, P, A and S. Capital
contributions were as follows: C – P1,000,000, P – P500,000, A – P500,000 and S – P400,000. The
partnership agreement provides that each partner shall receive 5% interest on the amount of his
capital contribution. In addition, C is to receive a salary of P100,000 and P a salary of P60,000. The
agreement further provides that A shall receive a minimum of P50,000 per annum from the
partnership and S a minimum of P120,000 per annum, both including amounts allowed as interest on
capital and their respective shares of profits. The balance of the profits to be shared in the following
proportions: C 30%; P – 30%; a – 20%; and S – 20%.
39. Calculate the share of C if the partnership earned P440,000 before salaries and interest.
40. Calculate the share of P if the partnership earned P440,000 before salaries and interest.
41. Calculate the share of A if the partnership earned P440,000 before salaries and interest.
42. Calculate the share of S if the partnership earned P440,000 before salaries and interest.
43.Calculate the amount that must be earned by the partnership before any charge for interest
on capital or partner’s salaries, in order that C may receive an aggregate of P250,000,
including interest, salary and share of profits.
44.Calculate the share of C if the partnership earned P646,667 before salaries and interest.
45.Calculate the share of P if the partnership earned P646,667 before salaries and interest.
46.Calculate the share of A if the partnership earned P646,667 before salaries and interest.
47.Calculate the share of S if the partnership earned P646,667 before salaries and interest.
PROBLEM 7
Angel and Mabal are partners in a construction business located in Cavite. The profit or loss are
distributed in the following order of priority:
 Salaries of P35,000 and P40,000 for Angel and Mabal, respectively.
 A bonus to Angel equal to 10% of net income after bonus.
 Interest on weighted average capital at the rate of 8%. Annual drawings in excess of P20,000
are considered reduction of capital for purposes of this calculation.
 Any balance to be divided 40:60 for Angel and Mabal, respectively.
Capital and drawing activity of the partners for the year are as follows:
Angel Mabal
Capital Drawing Capital Drawing
Beginning balance P120,000 P 0 P60,000
April 1 20,000
June 1 15,000 20,000
September 1 30,000
November 1 15,000 40,000
Ending balance P170,000 P30,000 P100,000 P20,000
Net income for the year is P132,000 before any allocations.
48.Compute the Weighted average capital of Angel

49.Compute the share in the net income of Angel
50.Compute the Ending Capital (after closing) of Angel
51.Compute the Weighted average capital of Mabal
52.Compute the share in the net income of Mabal
53.Compute the Ending Capital (after closing) of Mabal

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PROBLEM 1

June 1, investment - 90,000

December 1, investment - 60,000

Income summary has a credit amounting to P315,000.

27. Compute the weighted average capital of X

33.Compute the bonus if the expense is exclusive of bonus and salaries

36. Compute the amount of bonus to Fernando

Net income for the year is P132,000 before any allocations.

48.Compute the Weighted average capital of Angel

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