Emma Jane O.

Rivera BSA 1-D

Problem # 16

Alisuag Go Palantino
Capital contribution Php 300,000 Php 500,000 Php 200, 000

Profit- Php 450,000 Ratio- 3:5:2

1. Profit is allocated on the basis of the initial capital contributions.
Ratio according to capital contributions- 3:5:2
ALISUAG= 450,000/10*3= 135,000
GO= 450,000/10*5= 225,000
PALATINO= 450,000/10*2=90,000

ALISUAG GO PALATINO TOTAL

Profit ratio according to Php 135,000 Php 225,00 Php 90,000 Php 450,000
capital contributions

2. Each partner is allotted an interest of 7% on initial capital contributions and the remainder is divided
among Alisuag, Go, and Palatino in the ratio 4:3:1, respectively.

Alisuag Go Palatino Total

Capital contribution Php 300,000 Php 500,000 Php 200, 000 1,000,000
7% interest 21000 35,000 14,000 70,000
Remainder (4:3:1) 190,000 142,500 47,500 380,000
Share in profit 211,000 177,500 61,500 450,000
(interest and
remainder

Computation for the remainder Computation for the Interest

Alisuag- 380,000/8*4= 190,000 300,000* 7%= 21,000

Go -380,000/8*3= 142,500 500,000*7%= 35,000

Palatino- 380,000/8*1= 47,500 200,000*7%= 14,000

3. Salaries of P50,000, P40,000, and P30,000 are given to Alisuag, Go, and Palatino, respectively; 5% interest
on initial capital contributions, and any remainder is divided in the ratio 4:3:1, respectively.

ALISUAG GO PALATINO TOTAL

Salaries Php 50,000 Php 40,000 Php 30,000 Php 120,000
Interest 15,000 25,000 10,000 50,000
Remainder (4:3:1) 140,000 105,000 35,000 280,000
 Share in Profit 205,000 170,000 75,000 450,000

Computation for the Interest Computation for the Remainder

Alisuag- 300,000*5= 15,000 280,000/8*4= 140,000
Go- 500,000*5= 25,000 280,000/8*3= 105,000
Palatino- 200,000*5= 10,000 280,000/8*1= 35,000

4. Salaries of P30,000, P45,000, and P65,000 are given to Alisuag, Go, and Palatino, respectively; 5% interest
on initial capital contributions; bonus to Alisuag of 8% of profit after deducting bonus but before deducting
salaries and interest; and any remainder divided equally.

Alisuag Go Palatino TOTAL

Salaries Php 30,000 Php 45,000 Php 65,000 Php 140,000
Interest 15,000 25,000 10,000 50,000
Bonus 33,333.33 33,333.33
Remainder 75,555.55667 75,555.55667 75,555.55667 226,666.67
Share in profit 153,888.8867 145,555.55667 150,555.55667 450,000

Computation for Interest Computation for Remainder

Alisuag- 300,000*5= 15,000 226,666.67/3= 75,555.55667
Go-500,000*5= 25,000
Palatino- 200,000*5= 10,000
Computation for Bonus
B= (profit-B) 8%
=(450,000-B)8%
=36,000-8%B
B+.08B=36,000
1.08B=36,000
1.08B/1.08=36,000/1.08
B=33,333.33

Entry to record the profit allocation to individual capital account

1. 2.
Income Summary 450,000
Income Summary 450,000
Alisuag, Drawings 211,000
Alisuag, Drawing 135,000
Go, Drawings 177,500
Go, Drawing 225,000
Palatino, Drawings 61,500
Palatino, Drawings 90,000
3.
4.
Income Summary 450,000 Income Summary 450,000
Alisuag, Drawing 205,000 Alisuag, Drawings 153,888.88667
Go, Drawing 170,000 Go, Drawings 145,555.55667
Palatino, Drawings 75,000 Palatino, Drawings 150,555.55667

Problem # 17
Initial Investment
Mones Php 2,000,000
Pitular 1,000,000
Tuazon 1,000,000

Profit= Php 350,000

According to the partnership agreement, profit or loss is to be divided among the partners as follows:

1. Salaries of P120,000 for Mones, P60,000 for Pitular and P60,000 for Tuazon.

2. Interest at 5% on the original capital balances.

3. The remainder to be divided among Mones, Pitular, and Tuazon in a ratio of 4:1:1, respectively,

1. Partner's salaries and interest on capital balances should be fully allocated and any deficiency between these
allocations and profit is to be divided among Mones, Pitular, and Tuazon in the ratio 4:1:1, respectively.

Mones Pitular Tuazon Total

Salaries Php 120,000 60,000 60,000 240,000
Interest Php100,000 50,000 50,000 200,000
440,000
Remainder (4:1:1) (60,000) (15,000) (15,000) (90,000)
Share in Profit Php 160,000 95,000 95,000 350,000

Computation for Interest Computation for remainder

Mones- 2,000,000* 5%=100,000 (90,000)/6*4= (60,000)
Pitular- 1,000,000* 5%=50,000 (90,000)/6*1= (15,000)
Tuazon-1,000,000*5%=50,000 (90,000)/6*1= (15,000)

2. Partner's salaries and interest on capital balances should be made only to the extent that the profit can provide
Mones Pitular Tuazon Total
Salaries Php 120,000 60,000 60,000 240,000
Interest Php 55,000 27,500 27,500 110,000
Share in Profit Php175,000 87,500 87,500 350,000

Computation for Interest

Mones- 110,000/20*10= 55,000
Pitular- 110,000/20*5 =27,500
Tuazon- 110,000/20*5=27,500

(20 for the ratio from the orig. Interest 10:5:5)

Problem # 18

Alvaro Salaries= 240,000

Yacapin Salaries= 280,000

Alvaro Capital Yacapin Capital

8/1 150,000 1/1 500,000 7/1 100,000 1/1 700,000

4/1 50,000 9/1 225,000

1.Interest is based on average capital balances. The bonus is 5% and is calculated on profit after bonus. In 2022, profit
was P642,600. Any remainder is divided between Alvaro and Yacapin in a 3:2 ratio, respectively.

Alvaro Yacapin Total

Interest 10% 47,500 72,500 120,000
Bonus 30,600 30,600
Remainder 295,200 196,800 492,000
Share in Profit 373,300 269,300 642,600

Computation for Bonus

B=(Profit-B) Bonus Rate
=(642,600-B) 5%
=32130-.05%B
B+0.5B=32130
=1.05B=32130
=1.05B/1.08=32130/1.05
B= 30,600

INCOME SUMMARY 642,600

ALISUAG, DRAWING 373,300
GO, DRAWING 269,300

2. Interest is based on ending capital balances after deducting salaries, which the partners normally withdraw during the
year. The bonus is 8% and is calculated on profit after bonus and salaries. Profit was P1,087,000. Any remainder is
divided equally.
Alvaro Yacapin Total
Interest 10% 16,000 54,500 70,500
Bonus 42,000 - 42,000
Remainder (divide equally) 487,250 487,250 974,500
Share in Profit 545,250 541,750 1,087,000

Computation for Bonus (profit after bonus and salaries)

B= (Profit-B-S) Bonus Rate
=(1,087,000-B-520,000) 8%
=(567,000-B)8%
=45360-.08B
B+.08B=45,360
1.08B=45,360
1.08B/1.08=45,360/1.08
B=42,000
3. Interest is based on beginning capital balances. The bonus is 12.5% and is calculated on profit after bonus. Profit was
P769,500. Any remainder is divided between Alvaro and Yacapin in a 4:2 ratio, respectively.

Alvaro Yacapin Total

Interest 10% 50,000 70,000 120,00
Bonus 85,500 85,500
Remainder 376,000 188,000 564,000
Share in profit 511,500 258,00 769,500

Computation for Interest Computation for Bonus (Profit after Bonus)

Based on Beginning Capital Balances B=(Profit-B) Bonus Rate
= (769, 500-B) 12.5%
Alvaro= 500,000* 10%=50,000 =96187.5-12.5%B
Yacapin= 700,000*10% =70,000 B+12.5%B=96187.5
1.125%B=96187.5
1.125B/0.135=96187.5/1.125
B=85,500

Problem # 19

SUPER MANILA NOVELTY STORE

COMPREHENSIVE INCOME STATEMENT

FOR THE YEAR-ENDED DECEMBER 31, 2023

NET SALES 2,500,000.00

LESS: COST OF SALES 1,450,000.00

GROSS PROFIT 1,050,000.00

OPERATION EXPENSES

SALARIES EXPENSE 450,000

RENT EXPENSE 200,000

INSURANCE EXPENSE 30,000

UTILITIES EXPENSE 20,000

TOTAL EXPENSES: -700,000

 PROFIT 350,000.00

DIVISION OF PROFIT

Castor 105,000

Avenas 70,000

Laurente 175,000

SUPER MANILA NOVELTY STORE

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR-ENDED DECEMBER 31, 2023

CASTOR ARENAS LAURENTE

ORIGINAL INVESTMENT 75,000 300,000 150,000

ADD: ADDITIONAL INVESTMENT 50,000 25,000 -

TOTAL 125,000 325,000 150,000

LESS: PERMANENT WITHDRAWAL -50,000 -40,000

125,000 275,000 110,000

ADD: PROFIT 105,000 70,000 175,000

PARTNERS EQUITY 230,000 345,000 285,000

SUPER MANILA NOVELTY STORE

STATEMENT OF FINANCIAL POSITION
FOR THE YER ENDED DECEMBER 31,2023

ASSETS
110,000
ACCOUNTS RECEIVABLE 80,000
MERCH. INV 800,000
PREPAID RENT 20,000
PREPAID INSURANCE 15,000
TOTAL ASSETS 1,025,000
 LIABILITIES AND EQUITY
ACCOUNTS PAYABLE 50,000
NOTES PAYABLE 115,000
CASTOR, CAPITAL 230,000
ARENAS, CAPITAL 345,000
LAURENTE, CAPITAL 285,000
TOTAL LIABILITIES & EQUITY 1,025,000

Problem # 20

CALAMBA AND SANTIAGO PARTNERSHIP

INCOME STATEMENT
FOR THE YER ENDED DECEMBER 31,2022

NET SALES 6,779,250

LESS: COST OF SALES -5,449,560
GROSS PROFIT 1,329,690
LESS: OPERATING EXPENSES -570,270
PROFIT 759,420

CALAMBA SANTIAGO TOTAL

330,000 290,000 620,000
INTEREST 10% 61,200 49,960 111,160
REMAINDER 14,130 14,130 28,260
405,330 354,090 759,420

DIVISION IN PROFIT
CALAMBA 405,330
SANTIAGO 354,090

CALAMBA AND SANTIAGO PARTNERSHIP

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR-ENDED DECEMBER 31, 2022

CALAMBA SANTIAGO
ORIGINAL INVESTMENT 612,000 499,600
ADD: ADDITIONAL INVESTMENT
TOTAL
LESS: PERMANENT WITHDRAWAL -326,400 -244,800
285,600 254800
ADD: PROFIT 405, 330 354, 090
PARTNERS EQUITY 690,930 608,890

CALAMBA AND SANTIAGO PARTNERSHIP

STATEMENT OF FINANCIAL POSITION
FOR THE YER ENDED DECEMBER 31,2022

CASH 132,310
ACCOUNTS RECEIVABLE 545,070
ALLOWANCE FOR DOUBTFUL ACCOUNT (18, 790) 526,280
MERCH. INV 1,320,420
PREPAID INSURANCE 7,350
EQUIPMENT 290,280
TOTAL ASSETS PHP 2,276,640

LIABILITIES AND EQUITY

ACCOUNTS PAYABLE 677,820
NOTES PAYABLE 299,000
CALAMBA, CAPITAL 690,,930
SANTIAGO, CAPITAL 608,890

TOTAL LIABILITIES & EQUITY PHP 2,276,640