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    Integ02 A

    Uploaded by

    Ronald Coruno
    The document contains 6 multiple choice questions regarding the operations and profit/loss allocation of various partnerships: 1. A partnership with 3 partners lost $33,000 in 2009 before interest and salaries. The question asks how AAA's capital account would change. 2. A partnership earned $250,000 in 2009 and the question asks how much would be allocated to AAA based on the profit allocation agreement. 3. A partnership agreement stipulates salaries, bonuses, and profit sharing between partners Adam and Eve. The question asks how much Eve's share of the $360,000 profit would be.

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    Integ02 A

    Uploaded by

    Ronald Coruno
    234 views2 pages
    The document contains 6 multiple choice questions regarding the operations and profit/loss allocation of various partnerships: 1. A partnership with 3 partners lost $33,000 in 2009 before interest and salaries. The question asks how AAA's capital account would change. 2. A partnership earned $250,000 in 2009 and the question asks how much would be allocated to AAA based on the profit allocation agreement. 3. A partnership agreement stipulates salaries, bonuses, and profit sharing between partners Adam and Eve. The question asks how much Eve's share of the $360,000 profit would be.

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    Integ02.A

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    The document contains 6 multiple choice questions regarding the operations and profit/loss allocation of various partnerships: 1. A partnership with 3 partners lost $33,000 in 2009 before interest and salaries. The question asks how AAA's capital account would change. 2. A partnership earned $250,000 in 2009 and the question asks how much would be allocated to AAA based on the profit allocation agreement. 3. A partnership agreement stipulates salaries, bonuses, and profit sharing between partners Adam and Eve. The question asks how much Eve's share of the $360,000 profit would be.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    234 views2 pages

    Integ02 A

    Uploaded by

    Ronald Coruno
    The document contains 6 multiple choice questions regarding the operations and profit/loss allocation of various partnerships: 1. A partnership with 3 partners lost $33,000 in 2009 before interest and salaries. The question asks how AAA's capital account would change. 2. A partnership earned $250,000 in 2009 and the question asks how much would be allocated to AAA based on the profit allocation agreement. 3. A partnership agreement stipulates salaries, bonuses, and profit sharing between partners Adam and Eve. The question asks how much Eve's share of the $360,000 profit would be.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    II.

    PARTNERSHIP OPERATION

    1. AAA, BBB and CCC are partners with average capital balances during 2008 of
    P120,000, P60,000 and P40,000, respectively. Partners receive 10% interest on
    their average capital balances. After deducting salaries or P30,000 to AAA and
    P20,000 to CCC, the residual profit or loss is divided equally. In 2009 the
    partnership sustained a P33,000 loss before interest and salaries to partners. By
    what amount should AAA’s account change?
    a. P7,000 increase c. P35,000 decrease
    b. P11,000 decrease d. P42,000 increase

    2. The partnership agreement of AAA, BBB and CCC provides for the year-end
    allocation of net income in the following order:
     First, AAA is to receive 10% of net income up to P100,000 and 20% over
    P100,000
     Second, BBB and CCC each are to receive 5% of the remaining income over
    P150,000
     The balance of income is to be allocated equally among the three partners

    The partnership’s 2009 net income was P250,000 before any allocations to partners.
    What amount should be allocated to AAA?
    a. P101,000 c. P108,000
    b. P103,000 d. P110,000

    3. The Articles of Partnership of Adam and Eve the following provisions were
    stipulated:
     Annual salary of P60,000 each
     Bonus to Adam of 20% of the net income after partner’s salaries and bonus, the
    bonus being treated as an expense.
     Balance to be divided equally.

    The partnership reported a net income of P360,000 after partners’ salaries but before
    bonus. How much is the share of Eve in the profit?
    a. P 60,000
    b. 90,000
    c. 150,000
    d. 210,000
    4. Maxwell is trying to decide whether to accept a salary of P40,000 or salary of
    P25,000 plus a bonus of 10% of net income. After salaries and bonus as a means of
    allocating profit among partners. Salaries traceable to the other partners estimated
    to be P100,000. What amount of income would be necessary so that Maxwell would
    consider choices to be equal?
    a. P165,000
    b. 290,000
    c. 265,000
    d. 305,000
    5. Partner A first contributed P50,000 of capital into existing partnership on March 1,
    2002. On June 1, 2002, said partner contributed another P20,000. On September 1,
    2002, he withdrew P15,000 from the partnership. Withdrawal in excess of P10,000
    are charged to the partner’s capital accounts. What is the annual weighted average
    capital balance of Partner A?
    a. P 32,500
    b. 51,667
    c. 60,000
    d. 48,333

    6. Garcia and Henson formed a partnership on January 2, 2005 and agreed to share
    profits 90% and 10%, respectively. Garcia contributed capital of P 25,000. Henson
    contributed no capital but has a specialized expertise and manages the firm full time.
    There were no withdrawals during the year. The partnership agreement provides for
    the following:

    Capital accounts are to be credited annually with interest at 5% of beginning capital.


    Henson is to be paid a salary of P1,000 a month.
    Henson is to receive a bonus of 20% of income calculated before deducting his salary
    and interest on both capital accounts.
    Bonus, interest, and Henson’s salary are to be considered partnership expenses.

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