CHAPTER 3

Partnership Operations

E 3-1

1. Borr
Borres
es = 250/5
50/500
00 x P300
P300,0
,000
00 = P150
P150,0
,000
00
Buendia = 150/500 x P300,000 = P90,000
Bustos = 100/500 x P300,000 = P60,000

2. Borres = 3 / 6 x P300,000 = P150,000

Buendia = 1 / 6 x P300,000 = P50,000
Bustos = 2 / 6 x P300,000 = P100,000

E 3-2

Income Summar 500,000

Bana!, "a#ita! 23$,250
Benson, "a#ita! 262,$50
Bana! Benson %ota!
10& Interest on a'era(e ca#ita! P )9,000 P11*,500 P203,500
+emainder  di'ided eua!! 1*),250 1*),250 296,500
%ota! P23$,250 P262,$50 P500,000

"om#utation o a'era(e ca#ita!

Bana! 1/01 - 3/31 P)00,000 x 3 P 2,*00,000
*/01
*/01 - )/31
)/31 960,
960,00
000
0 x 5 *,)0
*,)00,
0,00
000
0
9/01  10/31 )*0,000 x 2 1,6)0,000
11/01
1/01  12/3
12/31
1 900,
900,00
000
0 x 2 1,)0
1,)00,
0,00
0000
P10,6)0,000 / 12 P)90,000

Benson 1/01 - 2/
2/2) P1,200,000 x 2 P 2,
2,*00,000
3/01 - 6/
6/30 1,020,000 x * *,0)0,000
$/01
$/01 - 9/30
9/30 1,16
1,160,0
0,000
00 x 3 3,*)
3,*)0,
0,00
000
0
10/01  12/31 1,260,000 x 3 3,$)0,000
P13,$*0,000 / 12
12 P1,1*5,000

E 3-3

Benito Bune %ota!

a. Interest o 10& on excess a'era(e ca#ita! P *0,000 P *0,000
Sa!aries 500,000 P300,000 )00,000
+emainder  di'ided in te ratio o $030 *2,000 1),000 60,000
%ota! P5)2,000 P31),000 P 900,000

 . Interest o 10& on excess a'era(e ca#ita! P *0,000 P *0,000

Sa!aries 500,000 P300,000 )00,000
+emainder di'ided in te ratio o $030  9),000  *2,000  1*0,000
%ota! P**2,000 P25),000 P $00,000
 PC – Chapter 3 page 2

E 3-*
1. B!anco = 120/300 x P120,000 = P*),0004 Banda = 1)0/300 x P120,000 = P$2,000

2. B!anco = 120/300 x P120,000 = P*),0004 Banda = 1)0/300 x P120,000 = P$2,000

3. B!anco Banda %ota!

Interest o )& on ori(ina! in'estment P 9,600 P1*,*00 P 2*,000
Ba!ance  di'ided eua!! *),000 *),000 96,000
%ota! P5$,600 P62,*00 P120,000

*. B!anco Banda %ota!

Sa!aries to #artners P 5*,000 P *5,000 P 99,000
Ba!ance  di'ided eua!! 10,500 10,500 21,000
%ota! P 6*,500 P 55,500 P120,000

5. B!anco = 50/125 x P120,000 = P*),0004 Banda = $5/125 x P120,000 = P$2,000

E 3-5
1. Bueno Beran %ota!
Interest o )& on e(innin( ca#ita! P 96,000 P10),000 P20*,000
Sa!aries to #artners *50,000 225,000 6$5,000
Ba!ance  di'ided 32  $$,*00  51,600  129,000
%ota! P*6),600 P2)1,*00 P$50,000

2. Beran = P$50,000 x 2/5 = P300,0004 oe'er, minimum (uaranteed amount to Beran is P320,000
Bueno = P$50,000  P320,000 = P*30,000

E 3-6
 et income ater sa!aries, interest and onus P3$*,000
Interest P200,000 x 10 & P20,000
Sa!aries 96,000 116,000
 et income eore interest and sa!aries P*90,000
Bonus rate x 25&
7mount o onus to e credited to Basco P 122,500

E 3-$

Income eore income tax = P650,000 / 65& = P1,000,000

1. B = .05 x P1,000,000 = P50,000

2. B = .05 P1,000,000  B
= P50,000 / 1.05
= P*$,619

3. B = .05 P1,000,000  %
% = .35 P1,000,000 = P350,000

B = .05 P1,000,000  P350,000

= .05 P650,000
= P32,500
 PC – Chapter 3 page 3

*. B = .05 P1,000,000  B  %
% = .35 P1,000,000 = P350,000

B = .05 P1,000,000  B  P350,000

= .05 P650,000  B
= P32,500 / 1.05
= P30,952

E 3-)
1. Ba!in Ba(tas Banta %ota!
"a#ita! a!ances P2*0,000 P200,000 P200,000 P 6*0,000
+euired ca#ita! 256,000 22*,000 160,000 6*0,000
"as recei'ed #aid P 16,000 P 2*,000 P *0,000 ----

Banta, "a#ita! *0,000

Ba!in, "a#ita! 16,000
Ba(tas, "a#ita! 2*,000

2. Ba!in Ba(tas Banta %ota!

"a#ita! a!ances P2*0,000 P200,000 P200,000 P 6*0,000
+euired ca#ita! 320,000 2)0,000 200,000 )00,000
7dditiona! in'estment P )0,000 P )0,000 -------- P 160,000

P2*0,000 / *0& = P600,0004 P200,000 / 35& = P5$1,*2)4 P200,000 / 25& = P)00,000

  "as 160,000
Ba!in, "a#ita! )0,000
Ba(tas, "a#ita! )0 000

3. Ba!in Ba(tas Banta %ota!

"a#ita! a!ances P2*0,000 P200,000 P200,000 P6*0,000
+euired ca#ita! 2*0,000 210,000 150,000 600,000
7dditiona! in'estmentitdraa!s -------- 10,000 P50,000 P *0,000

Banta, "a#ita! 50,000

Ba(tas, "a#ita! 10,000
"as *0,000

E 3-9
8rain(s car(ed a(ainst ca#ita! P520,000
ess 7dditiona! in'estment 100,000
8ecrease in ca#ita! P*20,000
ess et decrease in ca#ita! 2*0,000
Sare in net income P 1)0,000
Proit sare  25&
 et income o te #artnersi# P$20,000
 PC – Chapter 3 page 4

P 3-1
1. Income Summar 600,000
Bondoc, "a#ita! 360,000
Bara, "a#ita! 2*0,000
Bondoc = P600,000 x 60& = P360,000
Bara = P600,000 x *0& = P2*0,000

2. Income Summar 600,000

Bondoc, "a#ita! 350,000
Bara, "a#ita! 250,000
Bondoc = P600,000 x 210/360 = P350,000
Bara = P600,000 x 150/360 = P250,000

3. Income Summar 600,000

Bondoc, "a#ita! *00,000
Bera, "a#ita! 200,000
Bondoc = P600,000 x 255,000/3)2,500: = P*00,000
Bara = P600,000 x 12$,500/3)2,500:: = P200,000

: ;an. 1  7#r. 30 P210,000 x * = P )*0,000

<a 1  Se#t. 30 300,000 x 5 = 1,500,000
ct. 1 - 8ec. 31 2*0,000 x 3 = $20,000
P3,060,000 / 12 P255,000

::;an. 1  <ar. 31 P150,000 x 3 = P *50,000

7#r. 1  8ec. 31 120,000 x 9 = 1,0)0,000
P1,530,000 / 12 12$,500
P3)2,500

*. Income Summar 600,000

Bondoc, "a#ita! 305,100
Bara, "a#ita! 29*,*00
Bondoc Bara %ota!
)& interest on a'e. ca#. P 20,*00 P 10,200 P 30,600
Ba!ance  eua!! 2)*,$00 2)*,$00 569,*00
P305,100 P29*,900 P600,000

5. Income Summar 600,000

Bondoc, "a#ita! 3$6,000
Bara, "a#ita! 22*,000
Bondoc Bara %ota!
Sa!aries P120,000 P 96,000 P216,000
Ba!.  endin( ca#. ratio 256,000 12),000 3)*,000
P3$6,000 P22*,000 P600,000
 PC – Chapter 3 page 5

6. Income Summar 600,000

Bondoc, "a#ita! 300,000
Bara, "a#ita! 300,000
Bondoc Bara %ota!
  Bonus P150,000 P150,000
Ba!.  a'e. ca#ita! ratio P300,000 150,000 *50,000
P300,000 P300,000 P600,000
Bonus P600,000 x 1/3 di'ided  1 1/3 = P150,000

P 3-2
1. Income Summar $00,000
Berna!, "a#ita! 505,)00
Bur(os, "a#ita! 19*,200
Berna! Bur(os %ota!
)& int. on e(. ca#ita! P 2),)00 P 35,200 P 6*,000
Ba!ance  3 1 *$$,000 159,000 636,000
P505,)00 P19*,200 P$00,000

2. Income Summar $00,000

Berna!, "a#ita! 2)*,000
Bur(os, "a#ita! *16,000
Berna! Bur(os %ota!
Sa!aries P 1*0,000 P260,000 P*00,000
12& int. on endin( ca#ita! *),000 60,000 10),000
Ba!ance  eua!! 96,000 96,000 192,000
P2)*,000 P*16,000 P$00,000

3. Income Summar $00,000

Berna!, "a#ita! 39*,150
Bur(os, "a#ita! 305,)50
Berna! Bur(os %ota!
Sa!aries P 90,000 P 1$0,000 P260,000
12& int. on a'e. ca#.: *9,000 50,)00 99,)00
Ba!ance  31 255,150 )5,050 3*0,200
P39*,150 P305,)50 P$00,000

: ;an. 1  <a 31 P360,000 x 5 = P1,)00,000

;une 1  ct. 31 *60,000 x 5 = 2,300,000
o'. 1  8ec. 31 *00,000 x 2 = )00,000
P$,900,000 / 12 P*0),333

;an. 1  ;une 30 P**0,000 x 6 = P 2,6*0,000

;u! 1  ct. 31 360,000 x * = 1,**00,000
o'. 1  8ec. 31 500,000 x 2 = 1,000,000
P5,0)0,000 / 12 P*23,333

*. Income Summar $00,000

 PC – Chapter 3 page 6

Berna!, "a#ita! 26$,56$

Bur(os, "a#ita! *32,*33
Berna! Bur(os %ota!
Sa!aries P 100,000 P200,000 P300,000
10& int. on a'e. ca#ita! *0,)33 *2,333 )3,166
Ba!ance  *0&, 60& 126,$3* 190,100 316,)3*
P26$,56$ P*32,*33 P$00,000

5. Income Summar $00,000

Berna!, "a#ita! 329,360
Bur(os, "a#ita! 3$0,6*0
  Berna! Bur(os %ota!
Sa!aries P100,000 P100,000 P200,000
)& int. on e(. ca#ita! 2),)00 35,200 6*,000
Bonus -.10 I  S  I  *3,600 *3,600
Ba!ance  23 156,960 235,**0 392,*00
P329,360 P3$0,6*0 P$00,000

P 3-3
Bi!ao Berto! Bor>a %ota!
1. 6& interest on ca#ita! P 33,600 P 2*,000 P 1*,*00 P $2,000
Sa!aries 96,000 )0,000 1$6,000
Ba!ance  532 1*9,000  )9,*00  59,600 29),000
%ota! P115,*00 P 30,600 P 3*,)00 P50,000

2. 6& interest on ca#ita! P 33,600 P 2*,000 P ,1**00 P $2,000

Sa!aries 96,000 )0,000 1$6,000
Ba!ance  532  6*,000  3),*00  25,600 12),000
%ota! P 30,*00 P )1,600 P 6),)00 P120,000

3. 6& interest on ca#ita! P 33,600 P 2*,000 P 1*,*00 P $2,000

Sa!aries 96,000 )0,000 1$6,000
Bonus 2$,000 2$,000
Ba!ance  532 112,500 6$,500 *5,000 225,000
%ota! P 1*6,100 P21*,500 P 139,*00 P500,000

P 3-*

1. Basa Benito Be!tran Ba(nes %ota!

Sa!aries P*00,000 P200,000 P 600,000
Bonus 60,000 *0,000 100,000:
Interest 100,000 90,000 P *0,000 P 9*,000 32*,000
Ba!ance 269,000 269,000 269,000 269,000 1,0$6,000
%ota! P)29,000 P599,000 P309,000 P363,000 P2,100,000

:B = 5& P2,100,000  B = P100,000 x 3/5 = P60,000

x 2/5 = *0,000
 PC – Chapter 3 page 7

2. Basa Benito Be!tran Ba(nes %ota!

Sa!aries P *00,000 P 200,000 P 600,000
Interest 100,000 90,000 P *0,000 P 9*,000 32*,000
Ba!ance *31,000 *31,000 *31,000 *31,000 1,$2*,000
%ota! P 69,000 P1*1,000 P 391,000 P33$,000 P)00,000

3. Basa Benito Be!tran Ba(nes %ota!

Interest P 100,000 P 90,000 P *0,000 P 9*,000 P 32*,000
Bonus 22,)5$ 15,23) 3),095
Sa!aries 291,93$ 1*5,96) *3$,905:
%ota! P *1*,$9* P 251,206 P *0,000 P 9*,000 P )00,000

B = 5& P)00,000  B = P3),095 x 3/5 = P22,)5$4 P3),095 x 2/5 = P15,23)

:P*3$,905 x */6 = P291,93$4 P*3$,905 x 2/6 = P1*5,96)

P 3-5
1. Bente Ba!a %ota!
5& interest on ca#ita! P25,000 P 15,000 P *0,000
Sa!aries 120,000 )0,000 200,000
20& onus on net income 221,000 221,000
Ba!ance  ca#ita! ratio *02,500 2*1,500 6**,000
%ota! P$6),500 P 336,500 P1,105,000

2. Sa!es *,)00,000
"ost o ?oods So!d 2,100,000
#eratin( Ex#enses 1,000,000
Income %axes 595,000
Income Summar 1,105,000

Income Summar 1,105,000

Bente, "a#ita! $6),500
Ba!a, "a#ita! 336,500

Bente, "a#ita! 60,000

Ba!a, "a#ita! 100,000
Bente, 8rain( 60,000
Ba!a, 8rain( 100,000

Bente and Ba!a Partnersi#

 PC – Chapter 3 page 8

Statement o "an(es in Partners@ Euit

Aor te ear Ended 8ecemer 31, 2009

Bente Ba!a %ota!

"a#ita! a!ances, ;anuar 1, 2009 P 500,000 P300,000 P )00,000
7dd 8istriution o net income or 2009
Interests P 25,000 P 15,000 P *0,000
  Sa!aries 120,000 )0,000 200,000
Bonus 221,000 221,000
Ba!ance - ca#ita! ratio *02,500 2*1,500 6**,000
%ota! sare in net income P $6),500 P 336,500 P1,105,000

%ota! P1,26),500 P 636,500 P1,905,000

ess 8rain(s 60,000 100,000 160,000
"a#ita! a!ances, 8ecemer 31, 2009 P1,20),500 P 536,500 P1,$*5,000

P 3-6
1. et sa!es P1,525,000  P25,000 P1,500,000
"ost o (oods so!d
Purcases P9)0,000
ess <ercandise in'entor, end 365,000 615,000
?ross #roit P ))5,000
#eratin( ex#enses 300,000  12,500  5,000 C $,500 C 30,000 320,000
Income eore income tax P 565,000
Income tax 19$,$50
 et income P 36$,250

2. Brenda Brosas %ota!

Sa!aries P150,000 x )/12 P100,000 P100,000
7dditiona! 10& o I ater sa!aries 26,$25 26,$25
Ba!ance  ori(ina! ca#ita! 150,32) P 90,19$ 2*0,525
%ota! P2$$,053 P90,19$ P36$,250

3. Brenda Brosas %ota!

Be(innin( ca#ita! P625,000 P3$5,000 P1,000,000
7dd Sare in net income 2$$,053 90,19$ 36$,250
%ota! P902,053 P*65,19$ P1,36$,250
ess 8rain(s 100,000 150,000 250,000
Endin( ca#ita! P)02,053 P315,19$ P1,11$,250

P 3-$
Be on %o# "om#an
 PC – Chapter 3 page 9

Income Statement
Aor te ear Ended 8ecemer 31, 2009

Sa!es P5,100,000
"ost o (oods so!d
  Purcases P*,920,000
ess Purcase returns and a!!oances P 99,000
Purcase discounts 13),000 23$,000
"ost o (oods a'ai!a!e or sa!e P*,6)3,000
ess <ercandise in'entor, 8ecemer 31 1,**6,000 3,23$,000
?ross #roit P1,)63,000
ter o#eratin( income  interest 2$,000
Se!!in( ex#enses scedu!e 1  530,000
7dministrati'e and (enera! ex#enses scedu!e 2  )01,)00
#eratin( income P 55),200
Interest ex#ense  30,000
 et income eore Income %ax 52),200
Income %axes 1)*,)$0
 et Income ater Income %ax P 3*3,330

8i'ision o net income

Batan Buenas %ota!
Interest P 60,000 P *),900 P10),900
Sa!aries 100,000 100,000
Ba!ance  di'ided eua!! 6$,215 6$,215 13*,*30
%ota! P22$,215 P116,115 P3*3,330

Scedu!e 1  Se!!in( ex#enses Scedu!e 2  ?enera! and administrati'e ex#enses

Sa!es sa!aries P*)0,000 %axes P 36,500
Store su##!ies 19,200 8outu! accounts 9,300
8e#reciation 21,300 ters $56,000
7d'ertisin( 9,500 %ota! P)01,)00
P530,000

Be on %o# "om#an
Statement o "an(es in Partners@ Euit
Aor te ear Ended 8ecemer 31, 2009

Batan Buenas %ota!

ri(ina! ca#ita! P600,000 P*)9,000 P1,0)9,000
7dd Sare in net income 22$,215 116,115 3*3,330
%ota! P)2$,215 P605,115 P1,*32,330
ess 8rain( 1**,000 5*,000 19),000
"a#ita!, 8ecemer 31, 200) P6)3,215 P551,115 P1,23*,330

Be on Top Company
Statement of Financial Position
December 31 !""#
 PC – Chapter 3 page 10

7ssets
"urrent assets
"as P5)2,$50
otes recei'a!e 120,000
7ccounts recei'a!e P1)6,000
ess 7!!oance or doutu! accounts 9,300 1$6,$00
Interest recei'a!e 6,000
<ercandise in'entor 1,**6,000
Pre#aid taxes 10,000
Store su##!ies 16,)00 P2,35),250
 oncurrent assets
Store urniture P222,000
ess 7ccumu!ated de#reciation 21,300 200,$00
%ota! assets P2,55),950
iai!ities and "a#ita!
"urrent !iai!ities4
otes #aa!e P 360,000
7ccounts #aa!e $56,000
7d'ertisin( #aa!e 9,500
%axes #aa!e 10,500
Interest #aa!e 3,$50
Income %ax Paa!e 1)*,)$0
%ota! !iai!ities P1,32*,620

Batan, ca#ita! P 6)3,215

Buenas, ca#ita! 551,115
%ota! #artners@ ca#ita! 1,23*,330
%ota! !iai!ities and ca#ita! P2,55),950

3. 7d>ustin( entries
7d>ustment or in'entories is inc!uded in te c!osin( entries

a. Store Su##!ies Ex#ense 19,200

Store Su##!ies 19,200

 . 8e#reciation Ex#ense 21,300

7ccumu!ated 8e#reciation 21,300

c. 7d'ertisin( Ex#ense 9,500

7d'ertisin( Paa!e 9,500

d. Pre#aid %axes 10,000

  %axes 10,000

e. %axes 10,500
%axes Paa!e 10,500
. Interest Ex#ense 3,$50
Interest Paa!e 3,$50
 PC – Chapter 3 page 11

(. Interest +ecei'a!e 6,000

Interest +e'enue 6,000

. 8outu! 7ccounts Ex#ense 9,300

7!!oance or 8outu! 7ccounts 9,300

i. Income %ax 1)*,)$0

Income %ax Paa!e 1)*,)$0

"!osin( entries
a. <ercandise In'entor 1,**6,000
Interest +e'enue 2$,000
Purcase +eturns and 7!!oances 99,000
Purcase 8iscounts 13),000
Sa!es 5,100,000
Income Summar 6,)10,000

 . Income Summar 6,*66,6$0

?enera! Ex#enses  ters $56,000
Interest Ex#ense 30,000
  Purcases *,920,000
Sa!es Sa!aries *)0,000
  %axes 36,500
Store Su##!ies Ex#ense 19,200
8e#reciation Ex#ense 21,300
7d'ertisin( Ex#ense 9,500
8outu! 7ccounts Ex#ense 9,300
Income %axes 1)*,)$0

c. Income Summar 3*3,330

Batan, "a#ita! 22$,215
Buenas, "a#ita! 116,115

d. Batan, "a#ita! 1**,000

Buenas, "a#ita! 5*,000
Batan, 8rain( 1**,000
Buenas, 8rain( 5*,000

P 3-)
Bacani, Badeo and Barte
Statement o "an(es in Partners@ Euit
 PC – Chapter 3 page 12

Aor te %ree ears Endin( 8ecemer 31, 2009

Bacani Badeo Barte %ota!

ri(ina! ca#ita! P1,000,000 P500,000 P *00,000 P1,900,000
ess Sare in net !oss  200$ sc. 1  ),000  1*,000  20,000  *2,000
8rain( $2,000 )6,)00  96,000 25*,)00
"a#ita!, ;anuar 1, 200) P 920,000 P 399,200 P 2)*,000 P1,603,200
7dd Sare in net income  200) sc. 2 10$,200 99,952 93,0*0 300,192
%ota! P1,02$,200 P *99,152 P 3$$,0*0 P1,903,392
ess 8rain( 139,600 163,200 1$$,200 *)0,000
"a#ita!, ;anuar 1, 2009 P ))$,600 P 335,952 P 199,)*0 P1,*23,392
7dd Sare in net income  2009 sc. 3 1$0,)55 153,656 1*5,*)9 *$0,000
%ota! P1,05),*55 P *)9,60) P 3*5,329 P1,)93,392
ess 8rain( 163,200 195,200 169,600 52),000
"a#ita!, 8ecemer 31, 2009 P )95,255 P 29*,*0) P 1$5,$29 P1,365,392

Scedu!e 1  8istriution o 200$ net !oss

Bacani Badeo Barte %ota!
Sa!aries P 96,000 P 120,000 P 120,000 P336,000
Interest on e(innin( ca#ita! 60,000 30,000 2*,000 11*,000
Ba!ance  eua!!  16*,000  16*,000  16*,000  *92,000
%ota! P ),000 P 1*,000 P20,000 P *2,000

Scedu!e 2  8istriution o 200) net income

Bacani Badeo Barte %ota!
Sa!aries P 96,000 P 120,000 P 120,000 P336,000
Interest on e(innin( ca#ita! 55,200 23,952 1$,0*0 96,192
Ba!ance  eua!!  **,000  **,000  **,000  132,000
%ota! P 10$,200 P 99,952 P 93,0*0 P300,192

Scedu!e 3  8istriution o 2009 net income

Bacani Badeo Barte %ota!
Sa!aries P 96,000 P 120,000 P 120,000 P336,000
Interest on e(innin( ca#ita! 53,256 20,15$ 11,990 )5,*03
Bonus ),100 ),100
Ba!ance  eua!! 13,*99 13,*99 13,*99 *0,*9$
%ota! P 1$0,)55 P 153,656 P 1*5,*)9 P*$0,000
Bonus = P*$0,000  P336,000 C P)5,*03 x 20/120 = P),100

P 3-9
1. Ba!mes = 5/10 x )0& = *0&
Baman = 3/10 x )0& = 2*&
Bue!a = 2/10 x )0& = 16&
Ba(nes 20&

2. "orrected net income = P500,000   P2*,000 - P62,000 - P*0,000 C P30,000 C P1),000

x 65& = P*)0,500
 PC – Chapter 3 page 13

Ba!mes = P*)0,500 x *0& = P192,200 Bue!a = P*)0,500 x 16& = P$6,))0

Baman = P*)0,500 x 2*& = P115,320 Ba(nes = P*)0,500 x 20& = P96,100

<u!ti#!e "oice
1. B ;an. 1  <ar. 31 P )0,000 x 3 = P 2*0,000
7#r. 1  <a 31 96,000 x 2 = 192,000
;une 1  7u(. 31 112,000 x 3 = 336,000
Se#t. 1  8ec. 31 $2,000 x * = 2)),000
P1,056,000 / 12 = P)),000

2. B BaDas Be!da
"a#ita! e(. P 120,000 P 11),000
Sare in net !oss 32,000 16,000
P)),000 P102,000

3. 7 Bernardo Be!o
Sa!aries P 110,000 P 90,000
Ba!ance  60*0 12,000 ),000
P9),000 P)2,000

*. 8 Bustos
 et Proit P220,000
Bonus P220,000 x 10&/110& 20,000 20,000
Interest P220,000  P200,000 = P20,000 x 10& 2,000
Sa!aries  **,000 2*,000
Ba!ance P 15*,000
Sare o Bustos x 2/10 30,)00
%ota! #roit sare o Bustos P$*,)00

5. 7 Banta
;an. 1  ;une 30 P200,000 x 6 = P 1,200,000
;u!. 1 - 8ec. 31 320,000 x 6 = 1,920,000
P 3,120,000 / 12 = P260,000 x 10& = P26,000

Bera P300,000 x 10& = 30,000

Bor>a
;an. 1  Se#t. 30 P*50,000 x 9 = P*,050,000
ct. 1  8ec. 31 310,000 x 3 = 930,000
P*,9)0,000/12 = P*15,000 x 10& = *1,500
  P9$,500

6. B Sa!aries = P120,000 C P96,000 C P$2,000 P 2)),000

Interest 9$,500
Ba!ance = P10,000 x 3 30,000
%ota! P *15,500

$. 8 ri(ina! ca#ita! P 950,000

7dditiona! in'estment 120,000
itdraa!s  1*0,000
 PC – Chapter 3 page 14

 et income *15,500

%ota! #artnersi# ca#ita! P1,3*5,500
). B Besa Basco Buan Badue! %ota!
Interest P $,500 P3,$50 P3,$50 P3,000 P1),000
Sa!aries 15,000 9,000 2*,000
7dd@! #roit to Badue! 5,000 5,000
Ba!ance 15,000: 15,000 10,000 10,000 50,000
P3$,500 P2$,$50 P13,$50 P1),000 P9$,000

:P3$,500  P$,500  P15,000 = P15,000/30& = P50,000

9. B

10. 8

11. " tr distriutin( an #roit or !oss

12. " Bu!an Bustos Bucao %ota!

Sa!aries P2*,000 P1),000 P12,000 P 5*,000
Interest 19,500 2*,$00 29,*00 $3,600
Ba!ance  2** 10,*)0 20,960 20,960 52,*00
%ota! P53,9)0 P63,660 P62,360 P1)0,000

Bu!an
;an. 1  ;u! 1 P150,000 x 6 = P 900,000
;u! 1  ct. 1 1)0,000 x 3 = 5*0,000
ct. 1  8ec. 31 1$0,000 x 3 = 510,000
P1,950,000 / 12 = P162,500

Bustos
;an. 1  7u(. 1 P200,000 x $ = P1,*00,000
7u(. 1  ct. 1 220,000 x 2 = **0,000
ct. 1  8ec. 31 210,000 x 3 = 630,000
P2,*$0,000 / 12 = P205,)33

Bucao
;an. 1  o'. 1 P250,000 x 10 = P2,500,000
o'. 1  8ec. 31 220,000 x 2 = **0,000
P2,9*0,000 / 12 = P2*5,000

13. 7 Bu!an Bustos Bucao

ri(ina! ca#ita! P150,000 P200,000 P250,000
7dditiona! in'estment 30,000 20,000
itdraa!s  10,000  10,000  30,000
Sare in net income 53,9)0 63,660 62,360
"a#ita!, 8ec. 31, 2005 P223,9)0 P2$3,660 P2)2,360

1*. 8 Briones Ba!en Bur(os %ota!

Interest P 9*,500 P *$,$30 P 32,*$0 P1$*,$00
Sa!aries 2**,650 165,250 *09,900
Ba!ance Eua!! 2$),616 2$),616 2$),616 )35,)*)
 PC – Chapter 3 page 15

%ota! P 60,53* P)0,)96 P251,2*)

%< 10
1. A 5. % 9. A 13. % 1$. %
2. A 6. A 10. % 1*. % 1). A
3. % $. % 11. % 15. A 19. %
*. % ). % 12. % 16. % 20. %

%< 11
1. A *. B $. " 10. E 13. ;
2. ? 5. 7 ). F 11.  1* 
3. < 6. P 9. 8 12.  15. G

%< 12
1. 8
2. B
3. B
*. "
5. "
6. " Be!tran Bara %ota!
"a#ita! e(innin( P*00,000 P500,000 P900,000
Sare in net income-eua!! 200,000 200,000 *00,000
Sare in net !oss  21  160,000  )0,000  2*0,000
"a#ita!, end P**0,000 P620,000 P1,060,000

$. 8 P2,500,000 C P1,)00,000 C P*00,000 = P*,$00,000  P2,000,000 = P2,$00,000

). B Beran and Banda = 300/1,100 x P1,100,000 = P300,0004

Ban>o = 500/1,100 x P1,100,000 = P500,000

9. B BanHon Bor>a %ota!

Sa!aries P160,000 P200,000 P360,000
Interest on e(innin( ca#ita! 36,000 60,000 96,000
+emainder  eua!! $2,000 $2,000 1**,000
%ota! P26),000 P332,000 P600,000

10. B P520,000  P100,000  P2*0,000 = P1)0,000 / 20& = P900,000

11. 8 ;an. 1  ;une 30 P )*0,000 x 6 = P5,0*0,000

;u! 1  ;u! 31 1,0)0,000 x 1 = 1,0)0,000
7u(. 1  8ec. 31 990,000 x 5 = *,950,000
P11,0$0,000/12 = P922,500 x12&=P110,$00

12. " Basi!io Bituin %ota!

Sa!aries P220,000 P 1)0,000 P*00,000
+emainder  60*0  2*,000  16,000  *0,000
%ota! P 196,000 P 16*,000 P360,000

13. 7 P1,000,000 C P1,)00,000 x 20&  P200,000 = P1,160,000

1*. " P600,000 C P200,000 = P)00,000/2 = P*00,000
15. B P*50,000 x 60& = P2$0,000
 PC – Chapter 3 page 16

%< 13
Pro!em 7

Beltran Bernal an$ Basco Partnership

Sche$%le of the Distrib%tion of Partnership Profit

Be!tran Berna! Basco %ota!

Sa!aries P5$,600 P*),000 P3),*00 P1**,000
Interest 3*,560 *6,0)0 66,2*0 1*6,))0
Ba!ance  eua!! 55,0*0 55,0*0 55,0*0 165,120
%ota! distriution o net income P1*$,200 P1*9,120 P159,6)0 P*56,000

Beltran Bernal an$ Basco Partnership

Statement of Chan&es in Partners' E(%ity
For the )ear En$e$ December 31 !""#

Be!tran Berna! Basco %ota!

ri(ina! ca#ita! P3)*,000 P5$6,000 P)6*,000 P 1,)2*,000
7dd 7dditiona! in'estment 96,000 96,000
Sare in net income 1*$,200 1*9,120 159,6)0 *56,000
%ota! P62$,200 P$25,120 P1,023,6)0 P2,3$6,000
ess 8rain(  *),000  *),000 192,000  2)),000
"a#ita!, 8ecemer 31, 200) P5$9,200 P6$$,120 P)31,6)0 P2,0)),000

Pro!em B

1.
8ou!e B Partnersi#
Income Statement
Aor te ear Ended 8ecemer 31, 2009

Sa!es P1,)00,000
"ost o (oods so!d
In'entor, ;anuar 1 P )00,000
Purcases 1,200,000
"ost o (oods a'ai!a!e or sa!e P2,000,000
ess In'entor, 8ecemer 31 1,100,000 900,000
?ross #roit P900,000
#eratin( ex#enses
8e#reciation  ui!din( P30,000
8e#reciation  urniture and ixtures 30,000
ter o#eratin( ex#enses 300,000 360,000
 et income eore Income %ax P5*0,000
Income %ax 1)9,000
 et Income ater Income %ax P351,000
2. et income is a!!ocated as o!!os
Bi!ao Bra(as %ota!
Sa!aries P2*0,000 P2*0,000 P*)0,000
Interest on e(innin( ca#ita! $5,000 62,000 13$,000
 PC – Chapter 3 page 17

+emainder -23 106,*00 159,600 266,000

%ota! P20),600 P1*2,*00 P351,000

Income Summar 351,000

Bi!ao, "a#ita!, 20),600
Bra(as, "a#ita! 1*2,*00

3. Bi!ao, "a#ita! 200,000

Bra(as, "a#ita! 2*0,000
Bi!ao, 8rain( 200,000
Bra(as, 8rain( 2*0,000

8ou!e B Partnersi#
Statement o "an(es in Partners@ Euit
Aor te ear Ended 8ecemer 31, 2009

Bi!ao Bra(as %ota!

"a#ita!, ;anuar 1 P1,300,000 P1,2*0,000 P2,5*0,000
7dd 7dditiona! in'estment 200,000 200,000
Sare in net income 20),600 1*2,*00 351,000
%ota! P1,$0),600 P1,3)2,*00 P3,091,000
ess 8rain( 200,000 2*0,000 **0,000
"a#ita!, 8ecemer 31 P1,50),600 P1,1*2,*00 P2,651,000