Kap and Ner are partners who share profits and losses in the ratio of 70:30%, respectively. Pak's salary is Php 50,000 and Php 25,000 for Ner. The partners are also paid interest on their average capital balances. In 2020, Pak's received 30,000 of interest and Ner, 20,000. The profit and loss allocation are determined after deductions for the salary and interest payments. If Pak's share in the residual income was P56,000, what was the total partnership income?

 

2. On January 1, 2020, Rus and An decided to form a partnership. At the end of the year, a partnership made a net income of P75,000. The capital account of the partnership shows the following transactions.

 

	RUS	AN
JANUARY 1	30,000	40,000
MAY 1	6,000
JULY 1	(12,000)	8,000
AUGUST 1		(3,000)
OCTOBER 1	12,000	(2,000)

Assuming that an interest of 20% per annum is given on average capital and the balance of the profits is allocated equally, the allocation of profits should be?

 

3. The partnership contract for the Thick and Thock Partnership provided that Thick is to receive and annual salary of P70,000, Thock is to receive an annual salary of P50,000, and the remaining profit or loss is to be divided equally between the two partners. Net income of the Thick and Thock Partnership for the year ended December 31, 2021 was P100,000. The closing entry for net income on December 31, 2021 is a debit to Income Summary for P100,000 and credits to Thick Capital and Thock Capital, respectively of:

 

4.Tha, Rah and Gee entered into partnership by investing the following assets:

 

	THA	RAH	GEE
CASH	60,000	72,400	193,000
EQUIPMENT	900,000
FURNITURE AND FIXTURES	40,000	219,600	15,000

 

Although Gee has contributed the most cash to the partnership, Gee did not have the full amount of P180,000 available and was force to borrow personally P120,000. The delivery equipment contributed by Tha has a mortgage of P500,000 and the partnership is to assume the responsibility for the loan. The partners agree to divide profits and losses 40% to Tha; 40% to Rah; and 20% to Gee.

The partners further agreed to bring their respective capital interest in proportion to their profit and loss ratio.

Using the bonus method, capital transfer among partners should be made.

 

 

5. Co and Fe entered into partnership by investing the following assets:

 

	CO	FE
CASH	300,000	450,000
EQUIPMENTS	200,000	450,000
BUILDING	0	3,400,000
FURNITURE AND FIXTURES	800,000	0

 

The building is subject to a mortgage of Php 800,000, which is to be assumed by the partnership. The partnership agreement provides that Co and Fe share profits and losses 30 percent and 70 percent, respectively.

Assuming that the partners agreed to bring their respective capital in proportion to their respective profit and loss ratio, and using Fe's capital as the base, how much cash is to be invested by Co?

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