1. Marko, Lory and Cj are partners dividing profits and losses in the ratio of 5:3:2 and their capital balances as of January 1, 2019 were P600,000, P400,000 and P300,000, respectively. There is also a loan payable to Naty supported by a 6% interest bearing note dated March 31 in the amount of P250,000. Naty retired from the partnership as of July 31, 2019. The partners agreed to base her profit share on an estimated profit which is earned proportionately during the year. The net income for 2019 was estimated to be P600,000 before a 30% tax. As managing partner, Luz gets a 20% bonus on the net income after considering bonus. Since they have not appraised the properties,, they agreed that these should be increased by P120,000. Prior to her retirement, Naty withdrew cash of P15,000.

      Ques 10: What is Naty’s total interest (loan and capital) on date of retirement?

      Ques 11:   If partners agree to pay Naty P650,000 out of the partnership cash for all her interest,    

                      how will the difference affect the capital account of Luz?

      Ques 12: On Dec 31, 2019, the partnership earned revenues of P1,550,000 and expenses of

                     P950,000 including 30% tax provision. How much is Luz’s total share from the

                     year-end profit?

2. Using the same information, but that Naty died on Oct 1, 2019. Give all the related entries to record claim up to date of settlement. Oct 1, Dec 31 and date of settlement three months from Dec 31.

Accrued interest was agreed to be added to claim at 18%.

All entries to record and settle claim. Oct 1, Dec 31 and three months after.

Answer rating: 100% (QA)

Ques 10 What is Natys total interest loan and capital on date of retirement 2500000064... View the full answer