1.

Cleary, Wasser, and Nolan formed a partnership on February 1, 2012, with investments of P100,000,
P150,000, and P200,000, respectively. On March 1, Cleary contributed an equipment with a fair value
of P 50,000 and on July 1 Wasser invested additional cash of P 30,000. For division of income, they
agreed to (1) interest of 10% of the beginning capital balance each year , (2) bonus of 10% of net
income after salaries to wasser (3) annual compensation of P10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for Wasser and Nolan. Net
income was P150,000 after salary to wasser in 2012 and P180,000 after interest to partners in 2013.
Each partner withdrew P1,000 for personal use every month during 2012 and 2013.
Required :
1. Compute the share of partners in the profit of the partnership for the year 2012.
2. Compute the share of partners in the profit of the partnership for the year 2013.
3. Compute the ending capital balances of partners for the year 2013.
2. Cleary, Wasser, and Nolan formed a partnership on February 1, 2012, with investments of P100,000,
P150,000, and P200,000, respectively. On March 1, Cleary contributed an equipment with a fair value
of P 50,000 and on July 1 Wasser invested additional cash of P 30,000. For division of income, they
agreed to (1) interest of 10% of the beginning capital balance each year , (2) bonus of 10% of net
income after salaries to wasser (3) annual compensation of P10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for Wasser and Nolan. Net
income was P20,000 after salaries to wasser in 2012 and P120,000 after salaries to wasser in 2013.
Each partner withdrew P1,000 for personal use every month during 2012 and 2013.
Required : Assuming bonus is 10% of net income after salaries, interest and bonus.
1. Compute the share of partners in the profit of the partnership for the year 2012.
2. Compute the share of partners in the profit of the partnership for the year 2013.
3. Compute the ending capital balances of partners for the year 2013.