The partneship contract for Paul and David Partnership provided that Paul

is to receive an annual salary of 120,000 and David for 80,000, and the
remaining profit or loss is to be divided equally. Net income of the partnership
for the year ended December 31, 2020 was 180,000 and credit to Paul Capital
and David Capital, respectively of:

Mary and Jane are partners with capitals of 200,000 and 120,000, respectively.
The partnership agreement provided the following:
a. 10% interest on their capital investment
b. Annual salary of 36,000 to Mary
c. Reminder in 60:40 to Mary and Jane
What is the profit to be earned by partnership before charges for interest,
salary and the balance, so that Jane will receive 40,000 in the remainder of the
profit after salary and interest?

Company A, B, and C agree to form a partnership and to share profits in the ratio
of 5:3:3. They also agreed that Company A is to be allowed a salary of 28,000,
and that Company B is to be guaranteed 21,000 as his share of the profits. During
the first year of operation, income from fees are 180,000, while expenses total
96,000. What amount of net income should be credited to each partner's
capital account?
ANSWER:
Paul David Total
Annual Salary 120,000 80,000 200,000
Balance, equally -10,000 -10,000 -20,000
TOTAL P 110,000 P 70,000 P 180,000

Income Summary 180,000

Paul, Capital 110,000
David, Capital 70,000

SOLUTION:
Net Income after Interest and Salary
(40,000/40%) 100,000
Add: Provision for Allowances
Interest
Mary (200,000*10%) 20,000
Jane (120,000*10%) 12,000 32,000
Salary to Tony 36,000
Total Partnership Income 168,000

Answer= 168,000

ANSWER:
COMPANY A COMPANY B COMPANY C TOTAL
Salary 28,000 28,000
Balance 25,455 15,273 15,273 56,001
(84,000 - 28,000) 5:3:3
Additional Profit to B -3,579.38 5,727 2,147.63
TOTALS 21,875.63 21,000 41,125.38 84,001

Income fr Fees 180,000

Expenses 96,000
Net Income 84,000