JOE AND PETER: NO.

1-8
JOE PETER
UNADJ. CAP. 620,000 800,000 TCC
(20,000) (40,000) BONUS 3-4
(6,000) (7,000) TAC
(2,000) (3,000)
ADJ. CAP 592,000 750,000
1-2
FCM PARTNERSHIP: NO. 9-14
BEG. CAP. 300,000.00 450,000.00 250,000.00
FREY CHRISTINE MUNING
REMAINING BAL. 180,000.00 270,000.00 150,000.00
TOTAL DIS. N.I. 180,000.00 270,000.00 150,000.00
9-10
END. CAP. 200,000.00 600,000.00 400,000.00
FREY CHRISTINE MUNING
REMAINING BAL. 100,000.00 300,000.00 200,000.00
TOTAL DIS. N.I. 100,000.00 300,000.00 200,000.00
11-12
AVE. CAP 250,000.00 487,500.00 375,000.00
FREY CHRISTINE MUNING
REMAINING BAL. 134,831.46 262,921.35 202,247.19
TOTAL DIS. N.I. 134,831.46 262,921.35 202,247.19
13-14

KO, BE AND BRYANT: CAP. BAL. 30,000.00 20,000.00 40,000.00

KO (30%) BE (30%) BRYANT (40%)
SAL. - 12,000.00 -
INT. (10%) 3,000.00 2,000.00 4,000.00
REM. BAL. 9,600.00 9,600.00 12,800.00
TRANS. OF PROFIT- 3,600.00 - 3,600.00 7,200.00
TOTAL DIS. N.I. 9,000.00 20,000.00 24,000.00
17-18
PROBLEM 21-26

KALMADO APURADO
CASH ₱ 100,000 ₱ 30,000
EQUIPMENT ₱ 90,000
VEHICLE ₱ 300,000
TOTAL ₱ 190,000 ₱ 330,000
21-22 19-20
 APURADO'S % 25%
T.A.C. ₱ 1,320,000
KALMADO'S
% OF OWNERSHIP 75%
KALMADO'S
AGREED CAP. ₱ 990,000
CONT. CAP. ₱ 190,000
ADD'L INVEST. ₱ 800,000
23-24

LUKA AND DONCIC:

BEG. CAP 993,500.00 536,500.00 1,530,000.00
LUKA DONCIC TOTAL
SAL. 20,000.00 30,000.00 50,000.00
INT. - - -
BONUS (5%) 3,000.00 - 3,000.00
REM. BAL. 3,500.00 3,500.00 7,000.00
TOTAL DISTRIB 26,500.00 33,500.00 60,000.00
ADJ. CAP 1,020,000.00 570,000.00
ADD. INV. 10,000.00 10,000.00
TEMP. WITH. - 30,000.00 - 20,000.00
₱ 1,000,000 ₱ 560,000
27-28 25-26

60% 40%
BEG. BAL. 500,000.00 400,000.00
GOOD & BYE NO. 33-36 GOOD BYE
SALARY 120,000.00 60,000.00
INTEREST (10%) 50,000.00 40,000.00
33-34 BONUS (15%) 15,000.00 -
REM. BAL. 60,000.00 40,000.00
TRANS. OF PROF 5,000.00 - 5,000.00
TOTAL DISTRIB. 250,000.00 135,000.00
PERMANENT TRANS - 50,000.00 15,000.00
END. BAL. 700,000.00 550,000.00
35-36

HOW TO SOLVE?
1st plot all the given information
2nd place the trans. of profit
3rd complete the column of Bye by puttting the amount to make his amount receive P135,000
4th put the amount of bonus for Good as a balancing figure

PROBLEM 29 -32
 BALANCES
CASH ₱ 96,000
A/R ₱ 240,000
INVENTORY ₱ 185,000
EQUIPMENT ₱ 150,000
A/P -₱ 160,000
POWER, CAPITAL ₱ 511,000

Power's Capital
Unadjusted Bal. ₱ 511,000
Adjustments:
1. A.D.A. Recognition (5%) ₱ 12,000
2. Revaluation of Inventory -₱ 5,000
3.1 Prepaid Expense Recognition ₱ 10,500
3.2 Accrued Expense Recognition -₱ 8,000
4. Goodwill Recognition ₱ 25,000
Adjusted Capital Balance ₱ 545,500

Power's % 60%
T.A.C. ₱ 909,166.67
Ranger's % 40%
Ranger's agreed cap. ₱ 363,667

PROBLEM 33 -38

CASH ₱ 350,000
A/R ₱ 250,000
INVENTORY ₱ 245,000
FURNITURE ₱ 320,000
A/P -₱ 205,000
UNADJ. JEJE CAP. ₱ 960,000

IMP. LOSS -₱ 7,500

INC. IN FUR. ₱ 7,000
IMP. OF INV. -₱ 20,000

ADJ. JEJE CAP. ₱ 939,500 33-34

JEJE'S ASSETS ₱ 1,144,500

Mon'S INVEST. ₱ 450,000
TOTAL ASSETS ₱ 1,594,500 35-36

TAC ₱ 1,800,000
Mon's AC ₱ 450,000
JEJE's AC ₱ 1,350,000 ₱ 205,500
 JEJE's add'l inv. ₱ 410,500 37-38

PROBLEM 39 -44
Agreed Ratio 6 2 2
Partners DINA MA HAL
Annual Salaries ₱ 75,000 ₱ 75,000 ₱ 75,000
Bonus (20%) for Ver and Kwai ₱ 20,917 ₱ 20,917
Remaining Balance ₱ 125,500 ₱ 41,833 ₱ 41,833
Distributed Profit ₱ 200,500 ₱ 137,750 ₱ 137,750

Profit before ded. Sal. and Bonus ₱ 476,000

Annual Salaries ₱ 225,000
Profit after ded. Sal. but before Bonus ₱ 251,000
Convert to 100% by dividing to 1.20 ₱ 209,167
Bonus ₱ 41,833

DINA MA HAL
Beg, Cap, ₱ 280,000 ₱ 320,000 ₱ 300,000
Distributed Profit ₱ 200,500 ₱ 137,750 ₱ 137,750
With. of Salaries -₱ 75,000 -₱ 75,000 -₱ 75,000
End, Cap, ₱ 405,500 ₱ 382,750 ₱ 362,750
41-42 39-40 43-44

PROBLEM 45 - 48

TAYLOR 60% SWIFT 40%

UNADJ. CAP. 133,000.00 108,000.00
ADA - 2,700.00 - 1,800.00
INVENTORIES 3,000.00 2,000.00
EQUIP. 6,000.00 4,000.00
ACCR. EXP. - 2,400.00 - 1,600.00
ADJ. CAP. 136,900.00 110,600.00
T.A.C 154,687.50 92,812.50
% of BIEBER
ADJUSTMENTS 17,787.50 - 17,787.50
47-48

PROBLEM 49-56
Robert, Capital
Mar. 1 ₱ 40,000 ₱ 240,000 Jan. 1 Nov. 1
Nov. 1 ₱ 50,000 ₱ 40,000 May 1
₱ 60,000 Oct. 1

R CAP. DATES MONTH AVE.

 ₱ 240,000 Jan. 1 12 / 12
-₱ 40,000 Mar. 1 10 / 12
₱ 40,000 May 1 8 / 12
₱ 60,000 Oct. 1 3 / 12
-₱ 50,000 Nov. 1 2 / 12

B CAP. DATES MONTH AVE.

₱ 260,000 Jan. 1 12 / 12
₱ 375,000 Jul. 1 6 / 12
-₱ 285,000 Nov. 1 2 / 12

TOTAL AVE. CAP.

Robert Balong Total

Dis. of Profit ₱ 225,000 ₱ 375,000 ₱ 600,000
49-50 51-52
Cap. bal. before dis. of profit ₱ 250,000 ₱ 350,000

Ending cap. bal. ₱ 475,000 ₱ 725,000

55-56 53-54

PROBLEM 57 - 64

End. Capital ₱ 400,000 ₱ 300,000

Partners Soo Saad
Salaries ₱ 144,000 ₱ 180,000
Interest ₱ 40,000 ₱ 30,000
Bonus ₱ 26,000
Remaining bal. (Equal) ₱ 65,000.00 ₱ 65,000.00
Distribution of Profit ₱ 275,000.00 ₱ 275,000.00
59-60

Profit before Sal., Int., and Bonus

Salaries
Interest
Profit after Sal., Int., but before Bonus
Convert to 100% by dividing to 1.20
Bonus

Soo Saad
End. Capital ₱ 400,000 ₱ 300,000
Distribution of Profit ₱ 275,000 ₱ 275,000
 Adj. ending cap. bal. ₱ 675,000 ₱ 575,000
61-62 63-64

PROBLEM 65 - 72
300,000.00 500,000.00 800,000.00
JAMES ANTHONY TOTAL
SALARIES 120,000.00 - 120,000.00
INTEREST (15%) 45,000.00 75,000.00 120,000.00
BONUS - - -
REM. BAL. 88,500.00 147,500.00 236,000.00
TOTAL DISTRIB. 253,500.00 222,500.00 476,000.00
65-66

300,000.00 500,000.00 800,000.00

JAMES ANTHONY TOTAL
SALARIES 120,000.00 - 120,000.00
INTEREST (15%) 45,000.00 75,000.00 120,000.00
BONUS - - -
REM. BAL. - 52,500.00 - 87,500.00 - 140,000.00
TOTAL DISTRIB. 112,500.00 - 12,500.00 100,000.00
67-68

300,000.00 500,000.00 800,000.00

JAMES ANTHONY TOTAL
SALARIES 120,000.00 - 120,000.00
INTEREST (15%) 45,000.00 75,000.00 120,000.00
BONUS - - -
REM. BAL. 1,372.55 2,287.58 - 190,000.00
69-70 TRANS. OF PROF. - 68,750.00 68,750.00 -
TOTAL DISTRIB. 97,622.55 146,037.58 50,000.00

71-72 ZERO IS THE ANSWER. SINCE THE RESULT OF OPERATION IS NET LOSS, THERE WILL BE NO BO

PROBLEM 73 - 76
73-74 IF BONUS IS THE METHOD, THERE WILL BE NO GOODWILL

JC CARMI TOTAL
TCC 150,000.00 126,000.00 276,000.00
GW - 24,000.00 24,000.00
TAC 150,000.00 150,000.00 300,000.00
 40% 60% 45%
JOE PETER TOTAL JOE
592,000 750,000 1,342,000 TCC 592,000
(55,200) 55,200 GW 21,636
536,800 805,200 1,342,000 TAC 613,636.36
5-6

1,000,000.00 AVERAGING: TRANS. DATES AMOUNTS UPTO DEC. 31

TOTAL FREY: JAN. 1 300,000.00 12
600,000.00 JUN. 30 (100,000.00) 6
600,000.00
TOTAL MONS.
1,200,000.00 AVE. CAP.
TOTAL
600,000.00 CHRISTINE: JAN. 1 450,000.00 12
600,000.00 OCT. 1 150,000.00 3

1,112,500.00 TOTAL MONS.

TOTAL AVE. CAP.
600,000.00
600,000.00 MUNING: JAN. 1 250,000.00 12
MAR. 1 150,000.00 10

TOTAL MONS.
AVE. CAP.

90,000.00
TOTAL
12,000.00
9,000.00
32,000.00
-
53,000.00
15-16
 60%
900,000.00 BEG. BAL. 500,000.00
TOTAL GOOD
180,000.00 SALARY 120,000.00
90,000.00 INTEREST (10%) 50,000.00
15,000.00 ₱ 350,000 BONUS (15%) 15,000.00
100,000.00 80,000.00 115% REM. BAL. 60,000.00
- 69,565.22 100% TRANS. OF PROF. 5,000.00
385,000.00 10,434.78 15% TOTAL DISTRIB. 250,000.00

270,000.00
115,000.00 115%
100,000.00 100%
15%
29-30

31-32
 10
Total
₱ 225,000
₱ 41,833
₱ 209,167
₱ 476,000

120%
100%
20%

Total
₱ 900,000
₱ 476,000
-₱ 225,000
₱ 1,151,000

BIEBER TOTAL
241,000.00
- 4,500.00
5,000.00
10,000.00
- 4,000.00
247,500.00 80%
61,875.00 309,375.00 100%
45-46 61,875.00 20%

Balong, Capital
₱ 285,000 ₱ 260,000 Jan. 1
₱ 375,000 Jul. 1

AVE. CAP.
₱ 240,000
-₱ 33,333.33
₱ 26,666.67
₱ 15,000
-₱ 8,333.33
₱ 240,000

AVE. CAP.
₱ 260,000
₱ 187,500
-₱ 47,500
₱ 400,000

₱ 640,000

₱ 299,000
Total
₱ 324,000
₱ 70,000
₱ 26,000 120%
₱ 130,000 100%
₱ 550,000 20%

₱ 550,000
₱ 324,000
₱ 70,000
₱ 156,000
₱ 130,000
₱ 26,000
57-58
LOSS, THERE WILL BE NO BONUS TO BE GRANTED.

GOODWILL

75-76
 55%
PETER TOTAL
750,000 1,342,000
- 21,636
750,000 1,363,636
7-8

TOTAL
3,600,000.00
- 600,000.00
3,000,000.00
12
250,000.00

5,400,000.00
450,000.00
5,850,000.00
12
487,500.00

3,000,000.00
1,500,000.00
4,500,000.00
12
375,000.00
 40%
400,000.00 900,000.00
BYE TOTAL
60,000.00 180,000.00
40,000.00 90,000.00
- 15,000.00
40,000.00 100,000.00
- 5,000.00 -
135,000.00 385,000.00 115,000.00

75,000.00