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    Partnership Operation

    Uploaded by

    Shane Nayah
    The document discusses 10 scenarios involving partnership operations and agreements between partners. Key details include how partners share profits and losses (equally, proportionate to contributions, etc.), annual salary allowances for partners, bonuses, interest paid on capital balances, and how to calculate individual partner shares based on the partnership agreement specifics for each scenario.

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    Partnership Operation

    Uploaded by

    Shane Nayah
    415 views3 pages
    The document discusses 10 scenarios involving partnership operations and agreements between partners. Key details include how partners share profits and losses (equally, proportionate to contributions, etc.), annual salary allowances for partners, bonuses, interest paid on capital balances, and how to calculate individual partner shares based on the partnership agreement specifics for each scenario.

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    The document discusses 10 scenarios involving partnership operations and agreements between partners. Key details include how partners share profits and losses (equally, proportionate to contributions, etc.), annual salary allowances for partners, bonuses, interest paid on capital balances, and how to calculate individual partner shares based on the partnership agreement specifics for each scenario.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    415 views3 pages

    Partnership Operation

    Uploaded by

    Shane Nayah
    The document discusses 10 scenarios involving partnership operations and agreements between partners. Key details include how partners share profits and losses (equally, proportionate to contributions, etc.), annual salary allowances for partners, bonuses, interest paid on capital balances, and how to calculate individual partner shares based on the partnership agreement specifics for each scenario.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    PARTNERSHIP OPERATION

    1. The partners share in partnership profits or losses in accordance with their partnership
    agreement. If there is no stipulation on how partners should share in the profits or losses of the
    partnership,

    a. They should share equally.


    b. They should let one of the partners decide unilaterally on how the profits should be
    divided among the partners.
    c. Their respective shares would be in proportion to their contributions.
    d. They should not share at all but donate their profits to the world.

    2. A and B formed a partnership. The partnership agreement stipulates the following:

     Annual salary allowances of P80,000 for A and P40,000 for B.


     The partners share in profits and losses equally.

    The partnership earned profit of P100,000. How much is the share of B?

    a. 70,000
    b. 48,000
    c. 52,000
    d. 30,000

    3. A and B formed a partnership. The partnership agreement stipulates the following:

     Annual salary allowances of P10,000 for A and P40,000 for B.


     Bonus to A of 10% of the profit after partner’s salaries but before bonus.
     The partners share profits and losses on a 60:40 ratio.

    During the period, the partnership incurred a loss of P20,000 before deduction for
    salaries. By what amount did B’s capital account change?

    a. Increased by P12,000
    b. Increased by P32,000
    c. Decreased by P32,000
    d. Decreased by P12,000

    4. A and B formed a partnership. The partnership agreement stipulates the following:

     Annual salary allowances of P10,000 for A and P40,000 for B.


     Bonus to A of 10% of the profit after partner’s salaries but before bonus and
    interest.
     Interest of 12% on the beginning capital balance of B.
    During the period, the partnership earned profit of P200,000 before deduction for
    salaries. B’s beginning capital balance was P60,000.

    How much is the share of A in the profit?

    a. 101,680
    b. 98,320
    c. 110,820
    d. 96,720

    5. A and B formed a partnership. The partnership agreement stipulates the following:

     First, A shall receive 2% of profit up to P200,000 and 5% over P200,000.


     Second, B shall receive 1% of the remaining profit over P200,000.
     Any remainder shall be shared equally.

    During the year, the partnership earned profit of P500,000.

    How much is the share of A in the profit?

    a. 258,095
    b. 268,885
    c. 241,095
    d. 241,905

    6. A, B and C formed a partnership. The partnership agreement stipulates the following:

     Annual salary allowances of P100,000 for A and P20,000 for B


     10% interest on the beginning capital balance of C.
     The partners share in profits and losses on a 40:40:20 ratio.

    The partnership earned profit of P500,000. C’s capital account had a beginning balance
    of P300,000. The difference between the amounts received by A and B is

    a. 160,000
    b. 80,000
    c. 60,000
    d. 240,000

    7. A and B formed a partnership. The partnership agreement stipulates the following:

     Annual salary allowances of P80,000 for A and P40,000 for B.


     The partners share in profits and losses equally.

    The partnership earned profit of P100,000 after salaries. How much is the share of B?
    a. 130,000
    b. 90,000
    c. 70,000
    d. 30,000

    8. A and B formed a partnership. The partnership agreement stipulates the following:

     Monthly salary allowances P10,000 for A and P4,000 for B.


     The salaries are recognized as expenses.

    The partners share equally in profits and losses.

    The partnership earned profit of P360,000. How much is the share of A?

    a. 300,000
    b. 228,000
    c. 148,000
    d. 128,000

    9. A and B share equally in partnership profits and losses. During the year, A’s capital account
    has a net increase of P50,000. Partner A made contributions of P10,000 and capital withdrawals
    of P60,000 during the year. How much was the partnership profit for the year?

    a. 180,000
    b. 200,000
    c. 210,000
    d. 480,000

    10. A and B formed a partnership. The partnership agreement stipulates the following:

     Annual salary allowance of P100,000 for A, the managing partner.


     10% bonus to A after salaries but before deduction for the bonus.
     The partners share in profits and losses equally.

    The share of A in the partnership profit during the period was P595,000, including the
    bonus of P990,000. How much was the share of B?

    a. 386,000
    b. 398,000
    c. 405,000
    d. 504,000

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