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Partnership Operations Activity
Partnership Operations Activity
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.
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.
X Y Z
Ice, Cat and Anj, are partners in a partnership formed on January 1, 2007, had the initial investments as follows:
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%
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