Partner's Capital Balances Determine the share of profit fo

a. Equally
Marasigan, Capital 2,400,000.00 b. Failed to agree on a profit-sh
Asacta, Capital 3,600,000.00 c. Ratio of their original investm
d. Interest of 10% on their origi
e. Allowing salaries of P400,00
f. Paying salaries of P400,000 t

The partnership generated P840,000 profit during the year 2019

a. Equally
Marasigan, Capital 420,000.00
Asacta, Capital 420,000.00
TOTAL 840,000.00

b. Failed to agree on a profit-sharing arrangement

Marasigan, Capital 2,400,000.00 840,000.00 336,000.00
Asacta, Capital 3,600,000.00 840,000.00 504,000.00
TOTALS 6,000,000.00 840,000.00

c. Ratio of their original investments

Marasigan, Capital 2,400,000.00 840,000.00 336,000.00
Asacta, Capital 3,600,000.00 840,000.00 504,000.00
TOTALS 6,000,000.00 840,000.00

d. Interest of 10% on their original investments and dividing the remainder equally
Marasigan Asacta Net Income
Net Income 840,000.00
10% Interest 240,000.00 360,000.00 (600,000.00)
Balance 240,000.00
Balance to be divided equally 120,000.00 120,000.00 (240,000.00)
TOTALS 360,000.00 480,000.00 -

e. Allowing salaries of P400,000 for Marasigan and P280,000 for Asacta, and dividing the remainder equally
Marasigan Asacta Net Income
Net Income 840,000.00
Salary 400,000.00 280,000.00 (680,000.00)
Balance 160,000.00
Balance to be divided equally 80,000.00 80,000.00 (160,000.00)
TOTALS 480,000.00 360,000.00 -

f. Paying salaries of P400,000 to Marasigan and P280,000 to Asacta,

interest of 9% on their original investments, and dividing the remainder equally
Marasigan Asacta Net Income
Net Income 840,000.00
Salary 400,000.00 280,000.00 (680,000.00)
Balance 160,000.00
9% Interest 216,000.00 324,000.00 (540,000.00)
Balance (380,000.00)
Balance to be divided equally (190,000.00) (190,000.00) 380,000.00
TOTALS 426,000.00 414,000.00 -
mine the share of profit for each partner in 2019 and 2020 under each of the following conditions

ed to agree on a profit-sharing arrangement

io of their original investments
rest of 10% on their original investments and dividing the remainder equally
owing salaries of P400,000 for Marasigan and P280,000 for Asacta, and dividing the remainder equally
ing salaries of P400,000 to Marasigan and P280,000 to Asacta, interest of 9% on their original investments, and dividing the rem

9 The partnership generated P400,000 profit during the year 2020

a. Equally
Marasigan, Capital 200,000.00
Asacta, Capital 200,000.00
TOTAL 400,000.00

b. Failed to agree on a profit-sharing arrangement

Marasigan, Capital 2,400,000.00 400,000.00 160,000.00
Asacta, Capital 3,600,000.00 400,000.00 240,000.00
TOTALS 6,000,000.00 400,000.00

c. Ratio of their original investments

Marasigan, Capital 2,400,000.00 400,000.00 160,000.00
Asacta, Capital 3,600,000.00 400,000.00 240,000.00
TOTALS 6,000,000.00 400,000.00

d. Interest of 10% on their original investments and dividing the remainder equally
Marasigan Asacta
Net Income
10% Interest 240,000.00 360,000.00
Balance
Balance to be divided equally (100,000.00) (100,000.00)
TOTALS 140,000.00 260,000.00

emainder equally e. Allowing salaries of P400,000 for Marasigan and P280,000 for Asacta, and dividing the remaind
Marasigan Asacta
Net Income
Salary 400,000.00 280,000.00
Balance
Balance to be divided equally (140,000.00) (140,000.00)
TOTALS 260,000.00 140,000.00

f. Paying salaries of P400,000 to Marasigan and P280,000 to Asacta,

interest of 9% on their original investments, and dividing the remainder equally
Marasigan Asacta
Net Income
Salary 400,000.00 280,000.00
Balance
9% Interest 216,000.00 324,000.00
Balance
Balance to be divided equally (410,000.00) (410,000.00)
TOTALS 206,000.00 194,000.00
s, and dividing the remainder equally

ng the year 2020

Net Income
400,000.00
(600,000.00)
(200,000.00)
200,000.00
-

nd dividing the remainder equally

Net Income
400,000.00
(680,000.00)
(280,000.00)
280,000.00
-

Net Income
 400,000.00
(680,000.00)
(280,000.00)
(540,000.00)
(820,000.00)
820,000.00
-
Partner's Capital Balances Determine the partners’ share in
a. Equally
Calamba, Capital 200,000.00 b. Ratio of original investments
Brillantes, Capital 300,000.00 c. Ratio of time devoted to the bu
d. Interest of 10% on original inv
e. Interest of 10% on original inv
f. Plan ( e ), except that Calamba

Profit of 1,500,000.00
a. Equally
Calamba, Capital 750,000.00
Brillantes, Capital 750,000.00
TOTAL 1,500,000.00

b. Ratio of original investments

Calamba, Capital 200,000.00 1,500,000.00 600,000.00
Brillantes, Capital 300,000.00 1,500,000.00 900,000.00
TOTALS 500,000.00 1,500,000.00

c. Ratio of time devoted to the business 2:1

Calamba, Capital 2/3 1,500,000.00 1,000,000.00
Brillantes, Capital 1/3 1,500,000.00 500,000.00
TOTALS 1,500,000.00

d. Interest of 10% on original investments and the remainder in the ratio of 3:2
Calamba Brillantes Net Income
Net Income 1,500,000.00
10% Interest 20,000.00 30,000.00 (50,000.00)
Balance 1,450,000.00
Balance to be divided equally 870,000.00 580,000.00 (1,450,000.00)
TOTALS 890,000.00 610,000.00 -

e. Interest of 10% on original investments, salary allowances of P340,000 to Calamba and P170,000 to Brillantes,
and the remainder equally
Calamba Brillantes Net Income
Net Income 1,500,000.00
10% Interest 20,000.00 30,000.00 (50,000.00)
Balance 1,450,000.00
Salary 340,000.00 170,000.00 (510,000.00)
Balance 940,000.00
Balance to be divided equally 470,000.00 470,000.00 (940,000.00)
TOTALS 830,000.00 670,000.00 -
f. Plan ( e ), except that Calamba is also to be allowed a bonus equal to 20% of the amount by which profit
exceeds the salary allowances
Calamba Brillantes Net Income
Net Income 1,500,000.00
10% Interest 20,000.00 30,000.00 (50,000.00)
Balance 1,450,000.00
Bonus of 20% to Calamba 188,000.00 (188,000.00)
Balance 1,262,000.00
Salary 340,000.00 170,000.00 (510,000.00)
Balance 752,000.00
Balance to be divided equally 376,000.00 376,000.00 (752,000.00)
TOTALS 924,000.00 576,000.00 -
ne the partners’ share in the profit or loss for each of the situations assuming (1) profit of P1,500,000 and (2) profit of P660,000.

of original investments
of time devoted to the business
est of 10% on original investments and the remainder in the ratio of 3:2
st of 10% on original investments, salary allowances of P340,000 to Calamba and P170,000 to Brillantes, and the remainder equ
e ), except that Calamba is also to be allowed a bonus equal to 20% of the amount by which profit exceeds the salary allowance

Profit of 660,000.00
a. Equally
Calamba, Capital
Brillantes, Capital
TOTAL

b. Ratio of original investments

Calamba, Capital 200,000.00 660,000.00
Brillantes, Capital 300,000.00 660,000.00
TOTALS 500,000.00

c. Ratio of time devoted to the business 2:1

Calamba, Capital 2/3 660,000.00
Brillantes, Capital 1/3 660,000.00
TOTALS

d. Interest of 10% on original investments and the remainder in the ratio of 3:2
Calamba
Net Income
10% Interest 20,000.00
Balance
Balance to be divided equally 366,000.00
TOTALS 386,000.00

170,000 to Brillantes, e. Interest of 10% on original investments, salary allowances of P340,000 to Calamba and P170,00
Brillantes, and the remainder equally
Calamba
Net Income
10% Interest 20,000.00
Balance
Salary 340,000.00
Balance
Balance to be divided equally 50,000.00
TOTALS 410,000.00
y which profit f. Plan ( e ), except that Calamba is also to be allowed a bonus equal to 20% of the amount by whi
exceeds the salary allowances
Calamba
Net Income
10% Interest 20,000.00
Balance
Bonus of 20% to Calamba
Balance
Salary 340,000.00
Balance
Balance to be divided equally 50,000.00
TOTALS 410,000.00
1,500,000 and (2) profit of P660,000.

0 to Brillantes, and the remainder equally

h profit exceeds the salary allowances

0.00

330,000.00
330,000.00
660,000.00

264,000.00
396,000.00
660,000.00

440,000.00
220,000.00
660,000.00

in the ratio of 3:2

Brillantes Net Income
660,000.00
30,000.00 (50,000.00)
610,000.00
244,000.00 (610,000.00)
274,000.00 -

of P340,000 to Calamba and P170,000 to

Brillantes Net Income

660,000.00
30,000.00 (50,000.00)
610,000.00
170,000.00 (510,000.00)
100,000.00
50,000.00 (100,000.00)
250,000.00 -
s equal to 20% of the amount by which profit

Brillantes Net Income

660,000.00
30,000.00 (50,000.00)
610,000.00
-
610,000.00
170,000.00 (510,000.00)
100,000.00
50,000.00 (100,000.00)
250,000.00 -
Partner's Capital Balances Determine the partners’ share in
situations and prepare the entry t
Alisuag, Capital 300,000.00 1. Profit is allocated on the basis
Go, Capital 500,000.00 2. Each partner is allotted an inte
Palatino, Capital 200,000.00 divided among Alisuag, Go, a
3. Salaries of P50,000, P40,000,
5% interest on initial capital c
4. Salaries of P30,000, P45,000,
respectively; 5% interest on in
after deduction bonus but befo
Profit of P450,000 for the year ended December 31, 2019
1. Profit is allocated on the basis of the initial capital contributions.
Alisuag, Capital 300,000.00 450,000.00 135,000.00
Go, Capital 500,000.00 450,000.00 225,000.00
Palatino, Capital 200,000.00 450,000.00 90,000.00
TOTALS 1,000,000.00 450,000.00

2. Each partner is allotted an interest of 7% on initial capital contributions and the remainder is
divided among Alisuag, Go, and Palatino in the ratio 4:3:1, respectively.
Alisuag Go Palatino
Net Income
7% Interest 21,000.00 35,000.00 14,000.00
Balance
Balance divided in the ratio 4:3:1 190,000.00 142,500.00 47,500.00
TOTALS 211,000.00 177,500.00 61,500.00

3. Salaries of P50,000, P40,000, and P30,000 are given to Alisuag, Go, and Palatino, respectively;
5% interest on initial capital contributions, and any remainder is divided in the ratio 4:3:1, respectively.
Alisuag Go Palatino
Net Income
Salary 50,000.00 40,000.00 30,000.00
Balance
5% Interest 15,000.00 25,000.00 10,000.00
Balance
Balance divided in the ratio 4:3:1 140,000.00 105,000.00 35,000.00
TOTALS 205,000.00 170,000.00 75,000.00

4. Salaries of P30,000, P45,000, and P65,000 are given to Alisuag, Go, and Palatino,
respectively; 5% interest on initial capital contributions; bonus to Alisuag of 8% of profit
after deduction bonus but before deducting salaries and interest; and any remainder divided equally.
Alisuag Go Palatino
Net Income
Bonus to Alisuag 8% 33,333.33
Balance
Salary 30,000.00 45,000.00 65,000.00
Balance
5% Interest 15,000.00 25,000.00 10,000.00
Balance
Balance divided equally 75,555.56 75,555.56 75,555.56
TOTALS 153,888.89 145,555.56 150,555.56
 ermine the partners’ share in the profit under each of the following independent
ations and prepare the entry to record the profit allocation to individual capital accounts.
Profit is allocated on the basis of the initial capital contributions.
Each partner is allotted an interest of 7% on initial capital contributions and the remainder is
ivided among Alisuag, Go, and Palatino in the ratio 4:3:1, respectively.
Salaries of P50,000, P40,000, and P30,000 are given to Alisuag, Go, and Palatino, respectively;
% interest on initial capital contributions, and any remainder is divided in the ratio 4:3:1, respectively.
Salaries of P30,000, P45,000, and P65,000 are given to Alisuag, Go, and Palatino,
espectively; 5% interest on initial capital contributions; bonus to Alisuag of 8% of profit
fter deduction bonus but before deducting salaries and interest; and any remainder divided equally.

Closing Entry Income Summary 450,000.00

Alisuag, Capital
Go, Capital
Palatino, Capital

Net Income Closing Entry Income Summary 450,000.00

450,000.00 Alisuag, Capital
(70,000.00) Go, Capital
380,000.00 Palatino, Capital
(380,000.00)
-

3:1, respectively.
Net Income Closing Entry Income Summary 450,000.00
450,000.00 Alisuag, Capital
(120,000.00) Go, Capital
330,000.00 Palatino, Capital
(50,000.00)
280,000.00
(280,000.00)
-

vided equally.
Net Income Closing Entry Income Summary 450,000.00
450,000.00 Alisuag, Capital
(33,333.33) Go, Capital
 416,666.67 Palatino, Capital
(140,000.00)
276,666.67
(50,000.00)
226,666.67
(224,000.00)
-
135,000.00
225,000.00
90,000.00
450,000.00

211,000.00
177,500.00
61,500.00
450,000.00

205,000.00
170,000.00
75,000.00
450,000.00

153,888.89
145,555.56
150,555.56
450,000.00