Problem 4-17

1. Dar and Ling share in the partnership's profit in the ratio of 2:1, respectively. Dar received P245,000
as his share. How much did Ling receive as his share?
a. P367,000 c. P122,500
b. P245,000 d. P122,000
2. Dok, Ling and Gid share in the partnership's profit and losses in the ratio of 3:4:5. During the year,
the partnership's distributive income is P1,500,000. What is the amount of Gid's share from the
partnership's income?
a. P750,000 c. P500,000
b. P625,000 d. P125,000
3. The Adam and Apple Partnership has a P450,000 net income during the year. Adam gets credit for
salary of P120,000. How much of the profit is credited to Apple if they share remaining profits in a
ratio of 40:60, respectively?
a. P120,000 c. P270,000
b. P198,000 d. P318,000
4. The Caramba Partnership shows a net profit of P600,000 during the year. If partners Car, Ram and
Ba, have income ratios of 50%, 30% and 20%, respectively, how much is Ba's share from the net
income of the partnership?

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a. P600,000 c. P180,000
b. P300,000 d. P120,000

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5. The capital balances of partners Rap and Glow are as follows:
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January 1, 200A, beginning P100,000 P200,000

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June 30, 200A, investment 50,000

September 30, 200A, drawing (100,000)
Balance P150,000 P100,000
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Their agreement is to share profit and loss based on average capital. How much is the share of Glow
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in the partnership's income of P450,000?

a. P300,000 c. P262,500
b. P270,000 d. P180,000
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Problem 4-18
1. Sig and Fred agreed to share the partnership's profit as follows:
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To Sig: P15,000 per month: 5% bonus after salary and bonus

To Fred: The remaining balance
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What is the amount of Fred's share from the partnership's income of P411,000?
a. P385,000 c. P219,000
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b. P220,000 d. P200,000
2. Under the partnership agreement. Bear is to receive a bonus of 20% of net income after bonus and the
remainder is to be distributed as follows: 35% each to Bear and Chiok, and 30% to Tong. If then
partnership's net income is P3,180,000, what is the amount of Bear's share?
a. P795,000 c. P1,325,000
b. P927,000 d. P1,457,500
3. In 200A. Pa, Ma and Tay are partners with average capital balances of P120,000, P60,000 and
P40,000, respectively. The partners receive 10% interest on their average capital balances. After
deducting salaries of P30,000 to Pa and P20,000 Ma, the residual profit or loss is divided equally.
During the year, the partnership sustained a loss of P33,000, before interest and salaries to the
partners. By what amount should Pa's capital account change?
a. P42,000 increase c. P11,000 decrease
b. P23,000 decrease d. P7,000 increase

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 4. The partnership agreement of A, B and C provides for the year-end allocation of net income in the
following order:

First, A is to receive 10% of net income up to P100,000 and 20% over P100,000
Second, B and C are to receive 5% each of the remaining income over P150,000.

The balance of income is to be allocated equally among the three partners. The partnership's net
income was P250,000 before any allocation to partners.

What amount should be allocated to A?

a. P101,000 c. P108,000
b. P103,000 d. P110,000
Questions 5 to 8:
The partners of Dricia and Drenz are engaged in trading. Dricia's original capital was P40,000 and
Drenz's was P60,000. They agree to share profits and losses as follows:
Dricia Drenz
As salaries P28,000 P40,000
As interest on original capital 10% 10%
Remaining profits and losses 30% 70%

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5. If the profits for the year reached P120,000, what share of the profits would Dricia receive?

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a. P44,600 c. P57,400
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b. P46,400 d. P75,600
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6. If the profits for the year amounted to P40,000, what share of the profits would Drenz receive?
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a. P26,000 c. P19,800
b. P20,600 d. P19,400
7. If the losses for the year amounted to P20,000, what share of the loss would Dricia receive?
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a. (P 2,600) c. P2,600
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b. (P22,600) d. P5,200
8. If the profit for the year were P30,000, what share of the profit would Dricia receive?
a. P17,600 c. P12,400
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b. P17,400 d. (P12,400)
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Problem 4-19
1. The partnership agreement of Remel and Sonny provides that interest 14% per year is to be credited
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to each partner on the basis of weighted average capital balances. A summary of Sonny capital
account for the year ended December 31,200C, is as follows:
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Balance, January 1 P210,000

Additional investment, July 1 60,000
Withdrawal, August 1 (22,500)
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Balance, December 31 P247,500

What amount of interest should be credited to Sonny's capital account for 200C?
a. P32,287.50 c. P24,750.00
b. P34,650.50 d. P21,750.50
2. Jong and Kajong are partners who share profits and losses in the ratio of 60%; 40% respectively.
Jong's salary is P120,000 and Kajong's is P60,000. The partners are also paid interest on their average
capital balances.

In 200C, Jong received P60,000 of interest and Kajong, P24,000. The profit and loss allocation is
determined after deductions for the salary and interest payments. If Kajong's share in the residual
income (income after deducting salaries and interest) was P120,000 in 200C, what was the total
partnership income?

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 a. P384,000 c. P690,000
b. P564,000 d. P774,000
3. Luis is trying to decide whether to accept a salary of P80,000 or a salary of P50,000 plus a bonus of
10% of net income after salary and bonus as a means of allocating profit among the partners. Salaries
traceable to the other partners are estimated to be P200,000. What amount of income would be
necessary so that Luis would consider the choice to be equal?
a. P610,000 c. P530,000
b. P580,000 d. P330,000

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