Partnership Operations Activity

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 b. P245,000 c. P122,500 d. P122,000
2. The capital balances of partners Rap and Glow are as follows:

Rap Glow
January 1, 2009, beginning P 100,000 P200,000
June 30, 2009, additional investment 50,000
September 30, 2009, drawing ( 100,000)
Balance P 150,000 P 100,000
=====================
Their agreement is to share profit and loss based on average capital balance. How much is the share of Glow in the
partnership’s income of P450,000?
a. P300,000 b. P270,000 c. P262,500 d. P180,000
3. Hilnora Gregorio and Cristine Jumawan are partners who made the following agreement on how to divided their
profits and losses:
Gregorio Jumawan
Salaries to be provided P15,000 P20,000
Interest on original capital 10% 15%
Residual profit or loss 30% 70%
There has been no change in the capital balances of P200,000 and P300,000 respectively.
How much is their respective share in the profit of P120,000?
a. P41,000 for Gregorio and P79,000 for Jumawan
b. P49,000 for Gregorio and P71,000 for Jumawan
c. P50,000 for Gregorio and P70,000 for Jumawan
d. P52,000 for Gregorio and P68,000 for Jumawan
4. Arkie, a partner in the Twins partnership is entitled to 40% of the profits and losses. During 2008, Arkie contributed
land to the partnership that cost him P 1,620,000, but had a current value of P 1,944,000. also, during 2008, Arkie
had drawings of P 2,592,000. The balance of Arkie’s capital accounts was P 3,888,000 at the beginning of the year
and P 3,060,000 at the end of the year. Compute the partnership’s earnings (loss) for 2008.
a. P (270,000) b. P (180,000) c. P (450,000) d. P 450,000
5. The partnership of X, Y, Z was formed on January 1, 2009. The original investments were as follows: X, P 7,200,000;
Y, P 10,800,000; Z, P 16,200,000. According to the partnership agreement, net income or loss will be divided among
the respective partners as follows: (1) salaries of P 1,080,000 for X, P 900,000 for Y, P 720,000 for Z. (2) Interest of
8% on the average capital balance during the year to each partner. (3) Remainder is divided equally.
Additional information is as follows:

a. Net income of the partnership for the year ended December 31, 2006 was P 6,300,000.
b. X invested an additional p 1,800,000 in the partnership on July 1 2009.
c. Z withdraw P 2,700,000 from the partnership on October 1, 2009
d. X, Y and Z made regular drawings against their shares of net income during 2009 of P900,000 each.
The partner’s capital balances as of December 31, 2009 are:
X Y Z
a. P 11,010,000 11,946,000 14,844,000

b. 10,110,000 11,946,000 14,844,000
c. 9, 210,000 11,046,000 13,944,000
d. 8,280,000 9,180,000 12,144,000
The FOREVERMORE PARTNERSHIP started operation on January 2, 2017 with the following capital balances:
Xander P 88,000
Agnes 64,000
Kate 90,000
Their profit and loss agreement provide the following provisions
• Xander will be given an annual salary of P16,000 and Kate, P8,000.
• All partners will be given interest at 10% of beginning capital balances every year.
• The balance of the profit, or the (loss) will be divided on a 5:2:3 to Xander, Agnes, and Kate, respectively.
• Each partner is allowed to withdraw up to P8,000 every year.
In 2017, partnership operations resulted in a net loss of P16,000, while in 2018 it was a net profit of P32,000. All
partners withdrew the maximum amount of P8,000 each year.
6. Calculate the balance of Xander's capital at the end of 2017

A. P 49,600 C. P72,700
B. P64,900 D. P77,600
7. Calculate the balance of Agnes' capital at the end of 2018.

A. P44,076 C. P81,760
B. P 77,600 D. P82,080
Ice, Cat and Anj, are partners in a partnership formed on January 1, 2007, had the initial investments as follows:
Ice P100,000 Cat P150,000 Anj P225,000
The partnership agreement states that profits and losses are to be shared equally by the partners after
consideration is made for the following:
- Salaries allowed to partners are P60,000 for Ice, P48,000 for Cat and P36,000 for Anj
- Average partners’ capital balances shall be allowed interest of 10%
Additional information follows:

- On June 30, Ice invested an additional P60,000.
- On September 30, Anj withdrew P70,000 from the firm.
- The share of each partner in the remaining profits of the partnership is P5,000.
8. The interest of the partners’ average capital balances totalled:

a. P48,750 b. P 53,750 c. P 57,625 d. P 60,625
9. Based on the data above, the partnership’s net profit for 2007 was:
a. P222,750 b. P 211,625 c. 207,750 d. P 199,750
10. Using the data in number 6, the total partnership capital on December 31, 2007
a. P 405,000 b. P 465,000 c. P 475,000 d. P 672,750

Partnership Operations Activity

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Partnership Operations Activity

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1. Dar and Ling share in the partnership’s profit in the ratio of 2:1, respectively.

Dar received P245,000 as his share.

2. The capital balances of partners Rap and Glow are as follows:

a. P (270,000) b. P (180,000) c. P (450,000) d. P 450,000

Additional information is as follows:

a. P 11,010,000 11,946,000 14,844,000

6. Calculate the balance of Xander's capital at the end of 2017

7. Calculate the balance of Agnes' capital at the end of 2018.

Ice P100,000 Cat P150,000 Anj P225,000

Additional information follows:

8. The interest of the partners’ average capital balances totalled:

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