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Module 2 - Seatwork #2 Problem

The document presents a series of partnership profit and loss distribution problems involving different partners and their investment ratios, salary allowances, and profit-sharing agreements. Each problem requires calculations based on specified conditions such as profits, losses, and capital balances. The scenarios include various partners and their unique agreements for distributing profits and losses, culminating in the need for detailed profit distribution schedules.

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34 views3 pages

Module 2 - Seatwork #2 Problem

The document presents a series of partnership profit and loss distribution problems involving different partners and their investment ratios, salary allowances, and profit-sharing agreements. Each problem requires calculations based on specified conditions such as profits, losses, and capital balances. The scenarios include various partners and their unique agreements for distributing profits and losses, culminating in the need for detailed profit distribution schedules.

Uploaded by

michaelsulayao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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REVIEW PROBLEM

Problem 1

Matthew, Mark, and Luke agreed to share profits and losses according to the ratio of their respective investments
at the beginning of the year of P300,000, P250,000, and P450,000. Calculate the share of each partner under the
following conditions:

(a) P270,000 profit


(b) P240,000 loss

Problem 2

KZ and TJ divide partnership profits and losses solely on the basis of their average capital balances. KZ had
P275,000 invested during all of 2024. TJ had P200,000 invested from January 1 to August 1, and he withdrawn
P100,000 on September 1. If profit was P800,000 during 2024, how much should each partner receive?
REVIEW PROBLEM
Problem 3

The partnership agreement of Mary and Joseph provides for salary allowances of P100,000 for Mary and P120,000
for Joseph. In addition, they are allowed 9% interest on their capital balances at the beginning of the year. They
share remaining profits on the basis of three-fifths and two-fifths respectively. During the formation of partnership
last 2023, Mary and Joseph contributed P200,000 and P300,000. On January 1, 2024 the capital balances are
P400,000 for Mary and P500,000 for Joseph.
Prepare the profit distribution schedule assuming a profit of P420,000.

Problem 4

The partnership contract of Moses, Aaron, and Joshua provided for the distribution of profit and loss in the
following manner:
1. Bonus of 25% of income before bonus to Moses.
2. Interest at 15% on average capital accounts balances to each partner.
3. Residual profit or loss are divided equally.

Profit of Moses, Aaron, and Joshua for 2024 was P900,000, and the average capital account balances for the year
were Moses, P1,000,000; Aaron, P2,000,000; and Joshua, P3,000,000. Prepare profit distribution schedule.
REVIEW PROBLEM

Problem 5

Joy and Ethan have the following profit and loss agreement: salaries of P30,000 and P45,000 for Joy and Ethan,
respectively; a bonus to Joy of 10% income after salaries and bonus; and an interest of 10% on average capital
balances of 20,000 and P35,000 for Joy and Ethan, respectively. One-third of any remaining profit is allocated to
Joy and the balance to Ethan. If partnership had a profit of P102,500, prepare the profit distribution schedule.

Problem 6

Peter, Andrew, and John have the following profit and loss agreement:
• Partners Peter and Andrew will receive salaries of P40,000 each.
• Partner John will get a bonus of 10% of profit after salaries and bonus.
• Remaining profits are shared by Peter, Andrew, and John in the ratio of 3:4:3 respectively.

The partnership had a profit of P91,000. How much should be allocated to John?

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