Module 1 – Partnership Accounting

Unit 2.1 – Partnership Operation

Name: Simbala, Andi Te’a Mari O Date: 6/20/2020
Instructor: Conrado B. Chan JR., CPA, MBA Class Code: 1330 Score

Summary of Answers
1. B. P 11,000 Decrease
2. C. P 106,000
3. D. 210,000
4. B. 290,000
5. B. 51, 667
6. A. P 11, 688

Computation:
1.
Loss 33,000
Divide by: # of Partners 3
Share of each partner 11,000

2.
AAA BBB CCC TOTAL
Interest
100,000 x 10% 10,000
150,000 x 20% 30,000
60,000 x 5% 3,000 3,000 46,000
Remaining
204,000 / 3 68,000 68,000 68,000 204,000
TOTAL C. 108,000 71,000 71,000 250,000

3.
Adam Eve Balance
480,000
Salary 60,000 60,000 360,000
Bonus 60,000 300,000
Remaining 150,000 150,000 --
TOTAL 270,000 D. 210,000

4.
Bonus = 0.1 (Income – Bonus – Salary)
15,000 = .1 Income – (0.1 x 15,000) – (0.1x 125,000)
15,000 = 0.2 Income – (1,500) – (12,500)
15,000 + 1,500 + 12,500 = 0.1 Income
29,000 = 0.1 Income
Income = B. 290,000

5.
Initial contribution, March 1 50,000 x 12/12 41, 667
Additional Contribution, June 1 20,000 x 7/12 11,667
Withdrawal exceeding P 10,000 5,000 x 4/12 (1,667)
Weighted Average Capital 51,667

6. A. 11,688