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    Partnership Q6 Solution

    Uploaded by

    Lorraine Mae Robrido
    The document contains 7 sections that show capital account balances and profit/loss distributions for partners A, B, and C over multiple periods. Section 1 shows beginning capital balances, additional investments, withdrawals, average capital balances, and ending capital balances after distributing profits based on a 40-40-20 profit sharing ratio. Section 2 follows a similar format with a different profit sharing ratio. Section 3 shows a single partner's capital balances and share of profits. Sections 4-7 show additional examples of capital account calculations and distributions for partnerships with varying numbers of partners and profit/loss allocations.

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    Partnership Q6 Solution

    Uploaded by

    Lorraine Mae Robrido
    183 views4 pages
    The document contains 7 sections that show capital account balances and profit/loss distributions for partners A, B, and C over multiple periods. Section 1 shows beginning capital balances, additional investments, withdrawals, average capital balances, and ending capital balances after distributing profits based on a 40-40-20 profit sharing ratio. Section 2 follows a similar format with a different profit sharing ratio. Section 3 shows a single partner's capital balances and share of profits. Sections 4-7 show additional examples of capital account calculations and distributions for partnerships with varying numbers of partners and profit/loss allocations.

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    The document contains 7 sections that show capital account balances and profit/loss distributions for partners A, B, and C over multiple periods. Section 1 shows beginning capital balances, additional investments, withdrawals, average capital balances, and ending capital balances after distributing profits based on a 40-40-20 profit sharing ratio. Section 2 follows a similar format with a different profit sharing ratio. Section 3 shows a single partner's capital balances and share of profits. Sections 4-7 show additional examples of capital account calculations and distributions for partnerships with varying numbers of partners and profit/loss allocations.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    183 views4 pages

    Partnership Q6 Solution

    Uploaded by

    Lorraine Mae Robrido
    The document contains 7 sections that show capital account balances and profit/loss distributions for partners A, B, and C over multiple periods. Section 1 shows beginning capital balances, additional investments, withdrawals, average capital balances, and ending capital balances after distributing profits based on a 40-40-20 profit sharing ratio. Section 2 follows a similar format with a different profit sharing ratio. Section 3 shows a single partner's capital balances and share of profits. Sections 4-7 show additional examples of capital account calculations and distributions for partnerships with varying numbers of partners and profit/loss allocations.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 4

    1

    Average Capital Balances:

    A
    Feb. 15 150,000 11 1,650,000
    Jul. 14 30,000 6 180,000
    Oct. 16 -10,000 2 -20,000
    1,810,000 / 11 = 164,545.45

    B
    Feb. 15 200,000 11 2,200,000
    Aug. 15 20,000 5 100,000
    Oct. 17 -10,000 2 -20,000
    2,280,000 / 11 = 207,272.73

    C
    Feb. 15 250,000 11 2,750,000
    Nov. 13 -30,000 2 -60,000
    2,690,000 / 11 = 244,545.45

    Profit Distribution:
    0.2 0.4 0.4
    A B C Total
    Salary 22,000 16,500 11,000 49,500
    Interest 18,100 22,800 26,900 67,800
    Remainder 11,740 23,480 23,480 58,700
    Total 51,840 62,780 61,380 176,000

    A B C
    Beginning Capital Balances 150,000 200,000 250,000
    Additional investment 30,000 20,000
    Withdrawals -10,000 -10,000 -30,000
    Share in profit 51,840 62,780 61,380
    Ending Capital Balances 221,840 272,780 281,380

    2
    Average Capital Balances:

    A
    Jan. 1 80,000 12 960,000
    Jul. 1 20,000 6 120,000
    1,080,000 / 12 = 90,000
    B
    Jan. 1 120,000

    C
    Jan. 1 180,000 12 2,160,000
    Oct. 1 -30,000 3 -90,000
    2,070,000 / 12 = 172,500

    Profit Distribution:
    0.3333 0.3333 0.3333
    A B C Total
    Salary 12,000.00 10,000.00 8,000.00 30,000.00
    Interest 7,200.00 9,600.00 13,800.00 30,600.00
    Remainder 3,133.33 3,133.33 3,133.33 9,400.00
    Total 22,333.33 22,733.33 24,933.33 70,000.00

    A B C
    Beginning Capital Balances 80,000.00 120,000.00 180,000.00
    Additional investment 20,000.00
    Withdrawals -12,000.00 -12,000.00 -42,000.00
    Share in profit 22,333.33 22,733.33 24,933.33
    Ending Capital Balances 110,333.33 130,733.33 162,933.33

    3
    Beginning capital 120,000
    Additional investment 60,000
    Drawings -80,000
    Share in profit (loss) [SQUEEZE] 50,000
    Ending capital 150,000

    Profit (50,000 / 40%) 125,000

    4
    Let X = profit after bonus and salaries

    40,000 = 25,000 + 0.1X


    X = 150,000

    Profit after bonus and salaries 150,000


    Add back: Bonus (0.1 x 150,000) 15,000
    Profit before bonus 165,000

    5
    0.3 0.3 0.4
    A B C Total
    Beginning capital bal. 144,000 144,000 144,000 432,000

    Profit distribution:
    Salary 36,000 36,000 54,000 126,000
    Bonus 1,800 1,800 3,600
    Remainder 4,320 4,320 5,760 14,400
    42,120 42,120 59,760 144,000

    Drawings -36,000 -36,000 -54,000 -126,000

    Ending capital bal. 150,120 150,120 149,760 450,000

    6
    Total receipts (1,500,000 + 1,625,000) 3,125,000
    Expenses -1,080,000
    Income 2,045,000

    0.48 0.52
    A B Total
    Beginning capital 360,000 374,000 734,000
    Additional inv. 22,000 22,000
    Drawings -750,000 -750,000
    Profit distribution 981,600 1,063,400 2,045,000
    Ending capital 1,341,600 709,400 2,051,000

    7
    A B Total
    Beginnning capital bal. (1st yr) 200,000 100,000 300,000

    Loss Distribution:
    Salary 240,000 120,000 360,000
    Interest 20,000 10,000 30,000
    Remainder -270,000 -135,000 -405,000
    -10,000 -5,000 -15,000

    Drawings -10,000 -10,000 -20,000

    Ending capital bal. (1st yr) 180,000 85,000 265,000


    Beginning capital bal. (2nd yr) 180,000 85,000 265,000

    Profit Distribution:
    Salary 240,000 120,000 360,000
    Interest 18,000 8,500 26,500
    Bonus 5,000 5,000
    Remainder -168,250 -168,250 -336,500
    94,750 -39,750 55,000

    Drawings -10,000 -10,000 -20,000

    Ending capital bal. (2nd yr) 264,750 35,250 300,000

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