Partnership Operations: Sample Problems Problem 1: A and B formed a partnership in 20x9. The partnership agreement provides for annual salary allowances of P55,000 for A and P45,000 for B. The partners share profits equally and losses in a 60:40 ratio. The partnership had earnings of P80,000 for 20x9 before any allowances to partners. What amount of these earnings should be credited to each partner's capital accounts? Problem 2: Partners A, B, and C have the following profit and loss agreement: " A and B should receive salaries of P40,000 each. C gets a bonus of 10% of net income after salaries and bonus (the bonus is zero if salaries exhaust the net income) Remaining profits are shared by A, B, and C in the ratio 3:4:3, respectively. The partnership had a net income of P91,000. How much should be allocated to C? Problem 3: The following balance sheet was taken as of Sept 30, 2011 for ABC Partnership: Assets Liabilities and Capital Cash P80.000 Liabilities P200,00 0 Other Assets 520,000 A, Capital 100,000 B. Capital 180,000 C, Capital 120,000 Total 600,000 Total 600,000 Partners agreed the following distribution of profits: . 6% interest on capital contribution; . Annual salaries of P20,000 each; 10% bonus to A after salaries, interest and bonus: Remainder distributed 40%, 40% and 20% respectively. The partnership uses a fiscal period starting October 1. If C receives a total profit share of P20,000, compute for the total net income earned by