1. In the calendar year 2020, the partnership of A and B realized a net profit of P 240,000.

The capital accounts o

A capital B, capital
Debit Credit Debit Credit
Jan. 200,000 280,000
May-01 25,000 16,000
Jul-01 29,000
Aug-01 18,000
Oct-01 15,000 5,000

a.    If the profits are to be divided based on average capital, the share of A
b.    If 20% interest based on the capital at the end of the year is allowed an
c.    Prepare journal entry to record the distribution of profit of each of the

2. In the calendar year 2020, the partnership of Ana and Fe show the postings on their capital accounts presented

Ana, capital Fe, capital

Debit Credit Debit Credit
Jan. 300,000 330,000
Jun-01 24,000 50,000
Aug-01 45,000
Oct-01 50,000
Nov-01 30,000 22,000
A. For each of the following independent profit and loss agreement cases, prepare a schedule t
1.     Salaries are provided to Ana of 32,000 and 23,000 to Fe. Ana receives a bonus of 5 %
2.     Ana receives a bonus of 5% of profit after bonus and salaries. Salaries are P 50,000 to
3.     Both Ana and Fe are given an interest of 8% based on their respective average capital
B. Prepare journal entry to record the distribution of profit of each of the given case. ( 2 points each)

REQUIREMENT NO. 1-A

A
DATE BALANCES NO. OF MOS. AVERAGE
UNCHANGED CAPITAL
Jan-01 200,000 4 66,667
May-01 175,000 3 43,750
Aug-01 193,000 2 32,167
Oct-01 178,000 3 44,500
12 187,083
A 187,083
B 282,583
469,667

187,083
A=
469,667

282,583
B=
469,667

REQUIREMENT NO. 1-B

A B TOTAL
INTEREST 35,600 57,600 93,200
REMAINDER 73,400 73,400 146,800
109,000 131,000 240,000

REQUIREMENT NO. 1-C

JOURNAL ENTRY
NO. 1-A INCOME SUMMARY 240,000
A, DRAWING 95,600
B, DRAWING' 144,400

NO. 1-B INCOME SUMMARY 240,000

A, DRAWING 109,000
B, DRAWING' 131,000

ANA
DATE BALANCES NO. OF MOS. AVERAGE
UNCHANGED CAPITAL
Jan-01 300,000 5 125,000
Jun-01 276,000 4 92,000
Oct-01 326,000 1 27,167
Nov-01 296,000 2 49,333
12 293,500
REQUIREMENT NO. 2-A-1

ANA FE TOTAL
SALARIES 32,000 23,000 55,000
INTEREST 44,400 46,950 91,350
BONUS 28,571 28,571
REMAINDER 3:2 255,047 170,032 425,079
SHARE IN THE PROFIT 360,018 239,982 600,000

REQUIREMENT NO. 2-A-2

ANA FE TOTAL
SALARIES 50,000 40,000 90,000
INTEREST 29,350 33,675 63,025
BONUS 26,190 26,190
REMAINDER - EQUALLY 230,393 230,393 460,785
SHARE IN THE PROFIT 335,933 304,068 640,000

REQUIREMENT NO. 2-A-3

ANA FE TOTAL
SALARIES 60,000 80,000 140,000
INTEREST 23,480 26,940 50,420
BONUS 46,902 46,902
REMAINDER - EQUALLY 156,339 156,339 312,678
SHARE IN THE PROFIT 286,721 263,279 550,000

B. Prepare journal entry to record the distribution of profit of each of the given case. (2 points each)

JOURNAL ENTRY
NO. 2-A INCOME SUMMARY 600,000
ANA, DRAWING 360,018
FE, DRAWING' 239,982

NO. 2-B INCOME SUMMARY 640,000

ANA, DRAWING 335,933
FE, DRAWING' 304,068
NO. 2-C INCOME SUMMARY 550,000
ANA, DRAWING 286,721
FE, DRAWING' 263,279
f P 240,000. The capital accounts of the partners show the following postings:

ed on average capital, the share of A and B, respectively are :

al at the end of the year is allowed and given and the balance of the 240,000 profit is divided equally, the total share of A and B, respectively are:
distribution of profit of each of the given case.

s on their capital accounts presented below:

eement cases, prepare a schedule to distribute profit: ( 5 pts each)

to Fe. Ana receives a bonus of 5 % of profit after bonus. Interest of 15% based on ending capital balances and remainder will be shared on the ratio of 3:2
nd salaries. Salaries are P 50,000 to Ana and 40,000 to Fe. Interest of 10% based on average capital balances and any remainder will be divided equally. P
d on their respective average capital balances, salaries of P 60,000 and 80,000 are given respectively. Ana receives a bonus of 15% of profit after interest s
ven case. ( 2 points each)

B
DATE BALANCES NO. OF MOS. AVERAGE
UNCHANGED CAPITAL
Jan-01 280,000 4 93,333
May-01 264,000 2 44,000
Jul-01 293,000 3 73,250
Oct-01 288,000 3 72,000
12 282,583
 X 240000 = 95,600

X 240000 = 144,400

FE
DATE BALANCES NO. OF MOS. AVERAGE
UNCHANGED CAPITAL
Jan-01 330,000 5 137,500
Jun-01 380,000 2 63,333
Aug-01 335,000 3 83,750
Nov-01 313,000 2 52,167
12 336,750
 BONUS
NET INCOME 600,000 105%
LESS: BONUS 28,571 5%
NET INCOME AFTER AFTER BONUS 571,429 100% BASE
X BONUS RATE 5% 5%
BONUS 28,571

BONUS
NET INCOME 640,000
LESS: SALARIES 90,000
NET INCOME AFTER SALARIES BUT B4 BONUS 550,000 105%
BONUS 26,190 5%
NET INCOME AFTER AFTER SALARIES & BONUS 523,810 100%
X BONUS RATE 5% 5%
BONUS 26,190

BONUS
NET INCOME 550,000
LESS: SALARIES 140,000
INTEREST 50,420
NET INCOME AFTER SALARIES AND INTEREST BUT 359,580 115%
BONUS 46,902 15%
NET INCOME AFTER AFTER SALARIES & BONUS 312,678 100%
X BONUS RATE 15% 15%
BONUS 46,902

ven case. (2 points each)

A and B, respectively are:

er will be shared on the ratio of 3:2. Profit for distribution was P 600,000.
mainder will be divided equally. Profit for distribution was P 640,000.
nus of 15% of profit after interest salaries and bonus and any remainder will be divided equally. Profit for distribution was P 550,000.