a.

equally
Mah Kee Sig Total
Amount being allocated 27,000
Allocation:
Equally (27,000/3) 9,000 9,000 9,000 27,000
As allocated 9,000 9,000 9,000 27,000

Income and Expense Summary 27,000

Mah, Drawing 9,000
Kee, Drawing 9,000
Sig, Drawing 9,000

b. 60% to Mah, 30% to Kee and 10% to Sig

Mah Kee Sig Total
Amount being allocated: 27,000
Allocation:
(27,000 x 60%) 16,200 16,200
(27,000 x 30 %) 8,100 8,100
(27,000 x 10%) 2,700 2,700
As allocated 16,200 8,100 2,700 27,000

Income and Expense Summary 27,000

Mah, Drawing 16,200
Kee, Drawing 8,100
Sig, Drawing 2,700

c. 1/9 to Mah, 3/9 to Kee and 5/9 to Sig

Mah Kee Sig Total
Amount being allocated: 27,000
Allocation:
(27,000 x 1/9) 3,000 3,000
(27,000 x 3/9) 9,000 9,000
(27,000 x 5/9) 15,000 15,000
As allocated 3,000 9,000 15,000 27,000

Income and Expense Summary 27,000

Mah, Drawing 3,000
Kee, Drawing 9,000
Sig, Drawing 15,000

d. 3:5:2 for Mah, Kee and Sig, respectively

Mah Kee Sig Total
Amount being allocated: 27,000
Allocation:
(27,000 x 30%) 8,100 8,100
(27,000 x 50%) 13,500 13,500
(27,000 x 20%) 5,400 5,400
As allocated 8,100 13,500 5,400 27,000
Income and Expense Summary 27,000
Mah, Drawing 8,100
Kee, Drawing 13,500
Sig, Drawing 5,400

e. Using the beginning capital ratio

Mah Kee Sig Total
Amount being allocated: 27,000
Allocation:
(15,000 /80,000 x 27,000) 5,063 5,062.50
(30,000/80,000 x 27,000) 10,125 10,125
(35,000/80,000 x 27,000) 11,813.00 11,812.50
As allocated 5,063 10,125 11,813.00 27,000

Income and Expense Summary 27,000

Mah, Drawing 5,063
Kee, Drawing 10,125
Sig, Drawing 11,813.00

f. Using the ending capital ratio

Mah Kee Sig Total
Amount being allocated: 27,000
Allocation:
(21,000/89,500 x 27,000) 6,335.20 6,335.20
(36,000/89,500 x 27,000) 10,860.34 10,860.34
(32,500/89,500 x 27,000) 9,804.47 9,804.47
As allocated 6,335.20 10,860.34 9,804.47 27,000.01

Income and Expense Summary 27,000

Mah, Drawing 6,335.20
Kee, Drawing 10,860.34
Sig, Drawing 9,804.47

Mah Kee Sig

Beg capital 15,000 30,000 35,000
Additional Ins 9,000 15,500 37000
Total 24,000 45,500 72,000
Perm withdrawal 3,000 9,000 39,500
Ending capt 21,000 36,500 32,500 90,000
g. Using the weighted average capital ratio
Mah Kee Sig Total
Amount being allocated: 27,000
Allocation:
(P27,000 x 19,000/68,125);(P27,000 x 31,000/68,125); 7,530 12,286 7,184 27,000
(P27,000 x 18,125/68,125)
As allocated 7,530 12,286 7,184 27,000

Income and Expense Summary 27,000

Mah, Drawing 7,530
Kee, Drawing 12,286
Sig, Drawing 7,184

Mah Capt. Bal Months Total wac

Jan . 1 15,000 1 15,000
Feb. 1 12,000 2 24,000
Apr. 1 21,000 9 189,000
12 228,000 19,000
Kee capt bal months total wac
1-Jan 30,000 3 90,000
1-Apr 21,000 3 63,000
1-Jul 36,500 6 219,000
12 372,000 31,000
Sig capt bal months total wac
1-Jan 35,000 5 175,000
1-Jun (4,500) 5 (22,500)
1-Nov 32,500 2 65,000
12 217,500 18,125
35,000 5 175,000
37,000 5 185,000
32,500 2 65,000
425,000

h.
Mah Kee Sig Total
Interest 900 1,800 2,100 4,800
Balance: 3:4:3 6,660 8,880 6,660 22,200
As allocated 7,560 10,680 8,760 27,000

Income and Expense Summary 27,000

Mah, Drawing 7,560
Kee, Drawing 10,680
Sig, Drawing 8,760

i.
Mah Kee Sig Total
Salaries 3,600 5,400 6,000 15,000
Balance: Equally 4,000 4,000 4,000 12,000
As allocated 7,600 9,400 10,000 27,000

Income and Expense Summary 27,000

Mah, Drawing 7,600
Kee, Drawing 9,400
Sig, Drawing 10,000

j.
Mah Kee Sig Total
Bonus - - 5,400 5,400
Balance: Equally 7,200 7,200 7,200 21,600
As allocated 7,200 7,200 12,600 27,000

Income and Expense Summary 27,000

Mah, Drawing 7,200
Kee, Drawing 7,200
Sig, Drawing 12,600

k.
Mah Kee Sig Total
Bonus - - 4,500 4,500
Balance 4:3:3 9,000 6,750 6,750 22,500
As allocated 9,000 6,750 11,250 27,000

Income and Expense Summary 27,000

Mah, Drawing 9,000
Kee, Drawing 6,750
Sig, Drawing 11,250
68,125
Capital
Bi 120,000
Ni 60,000
Tin 35,000
Total 215,000

Interest on capital
Bi (120,000 x.10) 12,000
Ni (60,000 x .10) 6,000
Tin (-35,000 x .10) -3,500
Total 14,500

Net Profit
Bi (-2,000x5/10) -1,000
Ni (-2,000x3/10) -600
Tin (-2,000x2/10) -400
-2,000

Summary Interest Shared profit

Bi 12,000 -1,000 11,000
Ni 6,000 -600 5,400
Tin -3,500 -400 -3,900
12,500
a. Partner's Drawings
Vir 30,000
Housen 30,000
Total Salaries 60,000

Net Profit 120,000

Remaining Profit distributed by 3:2 60,000

Vir (60,000x3/5) 36,000

Housen (60,000x2/5) 24,000
60,000

Summary:
Vir (30,000+36,000) 66,000
Housen (30,000+24,000) 54,000
Total Profit Distribution 120,000

b. Partner's Salaries
Vir 30,000
Housen 30,000
Total Operating Expense 60,000

Net Profit 120,000

Operating Expense -60,000
Remaning Profit distributed by 3:2 60,000

Vir (60,000x3/5) 36,000

Housen (60,000x2/5) 24,000
Total Profit Distribution 60,000
a.
Net income before bonus 100% 20,400 `
Bonus (20%x20,400) 20% 4,080
Net income after bonus 80% 16,230

b.
Net income before bonus 120% 20,400
Bonus (20% x 17,000) 20% 3,400
Net income after bonus 100% 17,000 20,400/120%

3.6
a.
Net income before bonus & tax 100% 140,000
Income tax 37.50% 52,500
Net Income after tax 62.50% 87,500

Bonus ( 40% x 87,500) 35,000

b.
Net income before bonus & tax 125% 140,000
Bonus (40% x 62.50%) 25% 25,000
Net income after bonus but before tax 100% 112,000
Income tax 37.50% 42,000
Net income after bonus and tax 62.50% 70,000

Bonus (40% x 70,000) 28,000

 3.7
M, Cap N, Cap
Jan 1- 40,000 Jan 1 - 24,000

M Drawing N Drawing
10,200 12,000

M N O
Beginning Capital 40,000 24,000 20,000
Balance before profits 40,000 24,000 20,000
Distribution of profits:
5% interest 2,000 1,200 1,000
Salaries 4,800 6,000 6,000
Bonus (7,000 X 20%) 1,400
Balance : 3:3:4 2,100 2,100 2,800
10,300 9,300 9,800
Total 50,300 33,300 29,800
Drawing -10,200 -12,000 -10,600
Ending Capital 40,100 21,300 19,200

Net profit 29,400

Interest -4,200
Salaries -16,800
Net profit before bonus 8,400 120%
Bonus (20% x 7,000) 1,400 20%
Net profit after bonus 7,000 100%

3.8
Ricky Nelson Total
Amount being allocated 198,750
Allocation:
Interest 18,640 32,780 51,420
Salaries 45,000 36,000 81,000
Bonus 11,055 - 11,055
Balance: equally 27,637.50 27,637.50 55,275
As allcocated 102,332.50 96,417.50 198,750

Net profit 198,750

Interest -51,420
Salaries -81,000
Net profit before bonus 66,330 120%
Bonus (20% x 7,000) 11,055 20%
Net profit after bonus 55,275 100%

3.9
Bah Lee Wag Total
Interest 1,500 1,000 2,000 4,500
Salary - 6,000 - 6,000
Minimum share 12,000 12,000
Balance 3:3:4 6,750 6,750 9,000 22,500
8,250 13,750 23,000 45,000

3.10
Net Pprofit- 9,000
A B TOTAL
Salaries 4,000 6,000 10,000
Unallocated (3:1) 2,550 850 3,400
Total 6,550 6,850 13,400
Ratio (4:6) (9,000x40%);(9,000x60%) -3,600 -5,400 -9,000
Distributions 2,950 1,450 4,400

Understated 800
Overstatement in depreciation expense 3,600
A, adjustments 2,950
B, adjustments 1,450

3.11
200A Apple Green Total
Beginning Capital 36,000 30,000 66,000
Balance before profits 36,000 30,000 66,000
Distribution of profits:
4% interest 1,440 1,200 2,640
Salaries 4,000 6,000 10,000
Earnings b4 int & slries (24,230x2/3); (24,230x1/3) 16,153.33 8,076.67 24,230.00
21,593.33 15,276.67 36,870.00
Total 57,593.33 45,276.67 102,870.00
Drawing -6,140 -4,850.00 -10,990.00
Ending Capital 51,453.33 40,426.67 91,880.00

200B Apple Green Total

Beginning Capital 36,000 30,000 66,000
Balance before profits 36,000 30,000 66,000
Distribution of profits:
4% interest 1,440 1,200 2,640
Salaries 4,000 6,000 10,000
Earnings b4 int & slries (37,240x2/3); (37,240x1/3) 24,826.67 12,413.33 37,240.00
30,266.67 19,613.33 49,880.00
Total 66,266.67 49,613.33 115,880.00
Drawing -4,048 -7,152.00 -11,200.00
Ending Capital 62,218.67 42,461.33 104,680.00
 O, Cap
Jan 1 - 24,000 Jan 1- 20,000

O Drawing
10,600

Total
84,000
84,000

4,200
16,800
1,400
7,000
29,400
113,400
-32,800
80,600
 3.12
L V M Total
Amount being allocated 110,000
Allocation:
Bonus (10% x 100,000) - 10,000 - 10,000
Interest 2,500 2,500
Salaries 25,000 30,000 55,000
Balance: 3:3:4 12,750.00 12,750.00 17,000.00 42,500
As allcocated 37,750.00 25,250.00 47,000.00 110,000

Net income b4 bonus 110% 110,000

Bonus ( 10% X 100,000) 10% 10,000
Net income after bonus 100% 100,000 (110,000/110%)

Income and Expense Summary 110,000

L, Drawing 37,750
V, Drawing 25,250
M, Drawing 47,000

3.13
Con Rad Total
10% intrest 20,000 25,000 45,000
Salaries 20,000 48,000 68,000
Residual income: equally -60,500 -60,500 -121,000
-20,500 12,500 -8,000

3.14
Cue and Peed partnership
Statement of changes in Partner's equity
for the priod ended december 31, 200a

cue Peed Total partnership

equity, march 1 0 0-
Add: Investment 200,000 100,000 300,000
Add: Profit for 200a
Salaries 20,000 20,000
bonus 6,162.70 6,162.70
balaance (55,464.30x2/3); 36,976.20 18,488.10 55,464.30
(55,464.30x1/3)
Total share in profit 63,138.9 18,488.10 81,627
Total 263,138.9 118,488.10 381,627
Less: withdrawals -20,000 -10,000 -30,000
capital balances, december 31 243,138.9 108,488.10 351,627
 3.16
Pat Neri Cip Total
Beginning Capital 200,000 300,000 500,000 1,000,000
Balance before profits 200,000 300,000 500,000 1,000,000
Distribution of profits:
6% interest 12,000 18,000 30,000 60,000
Salaries 120,000 144,000 180,000 444,000
Bonus (20% x 372,000) 74,400 74,400
Balance : 24%; 36%; 40% -49,536 -74,304 -82,560 -206,400
82,464 87,696 127,440 372,000
Total 282,464 387,696 627,440 1,372,000
Drawing -30,000 -40,000 -50,000 -120,000
Ending Capital 252,464 347,696 577,440 1,252,000
 Mah Kee Sig Total
Amount being allocated: 360,000
Allocation:
(P27,000 x 19,000/68,125);(P27,000 x 31,000/68,125); 7,530 12,286 7,184 27,000
(P27,000 x 18,125/68,125)
As allocated 7,530 12,286 7,184 27,000

Income and Expense Summary 27,000

Mah, Capital 7,530
Kee, Capital 12,286
Sig, Capital 7,184

Mah Capt. Bal Months Total wac

Jan . 1 120,000 2 240,000
Mar. 1 100,000 2 200,000
May-01 95,000 6 570,000
oct. 1 20,000 1 20,000
nov. 1 30,000 1 30,000
12 1,060,000 88,333
Kee capt bal months total wac
1-Jan 130,000 3 90,000
1-Jul -12,000 3 63,000
nov.1 36,500 6 219,000
12 372,000 31,000
Sig capt bal months total wac
1-Jan 35,000 5 175,000
1-Jun (4,500) 5 (22,500)
1-Nov 32,500 2 65,000
12 217,500 18,125
35,000 5 175,000
37,000 5 185,000
32,500 2 65,000

Lyon Tyger Total

Amount being allocated 285,000
Allocation:
Interest 2,000 3,000 5,000
Salaries 10,500 12,500 23,000
Bonus 28,500.00 28,500
Balance: equally 127,000.00 127,000.00 -254,000
As allcocated 139,500.00 171,000.00 -197,500

Net income b4 bonus 110% 285,000

Bonus ( 10% X 259,090.01) 10% 28,500.00
Net income after bonus 100% 256,500.00 (285,000/110%)
285,000.00
 polly yester Total
Amount being allocated 600,000
Allocation:
Interest 60,000 96,000 156,000
Salaries 10,000 12,000 22,000
Bonus 120,000 120,000
Balance: equally 151,000.00 151,000.00 302,000
As allcocated 221,000.00 259,000.00 600,000

120% 600k
20% 120k
100% 480

Caloy Daboy Totl

int 2,500 4,500
sal 72,000 84,000
bal
tom jones
allocation 120,000

ree ver kwai total

276,000
salary 60,000 60,000 60,000 180,000
bonus 48,000 48,000 96,000 276,000
16,560 55,200 5,520 77,280 -180,000
76,560 163,200 113,520 96,000

c d e total
profit 720,000
Salaries 120,000 150,000 270,000
bonus 144,000 c-20%

M N O Total
Beginning Capital 120,000 80,000 200,000
add inv 20,000 40,000
Balance before profits 140,000 120,000 260,000
Distribution of profits:

Salaries 4,800 6,000 6,000 16,800

Bonus (7,000 X 20%) 1,400 1,400
Balance : 3:3:4 2,100 2,100 2,800 7,000
8,300 8,100 8,800 25,200
Total 148,300 128,100 8,800 285,200
Drawing -10,200 -12,000 -10,600 -32,800
Ending Capital 138,100 116,100 -1,800 252,400

bee gees
Amount being allocated 120,000
Allocation:
Interest 25,000 20,000 45,000
Salaries 90,000 200,000 290,000 bee
Balance: equally -107,500.00 -107,500.00 -215,000 Jan . 1
As allcocated 7,500.00 112,500.00 120,000 Jul-01
dec.. 31

capital bal 20,000 40,000

add inv 12,000 gees
withdrawals -12,000 Jan . 1
drawing account (debit bal) 5,000 3,000 Aug. 1
37,000 31,000 Dec-31
balance:equally 23,921.57 52,328.43 76,250
60,921.57 83,328.43

Mar-01 -20,000 -50,000 gees

Jul-01 25,000 m
Aug-01 30,000 Aug. 1
Oct-01 10,000 Dec-31
Nov-01 -65,000
20,000 -90,000

KUNG FU M Total
Amount being allocated 260,000
Allocation:
Bonus (10% x 100,000) - 20,160 20,160
Interest 50,000 30,000 80,000
Salaries 12,000 15,000 12,000
Balance: 3:3:4 73,920.00 73,920.00 147,840
As allcocated 135,920.00 124,080.00 260,000

hue
m. 1
Aug-01
Oct-01
 hue
m. 1
Jul-01
Nov-01

Division of Profir cue peed total

Salary allowance (24,000 x 10/12) 20,000 - 20,000
Bonus 6,162.70 6,162.70
Remainder
55,464.30x2/3 36,976.20 36,976.20
55,464.30x1/3 18,488.10 18,488.10
tital 63,138.9 18,488.10 81,627.00

computation for bonus

net profit 81,627
less: salay 20,000
Remainder 61,627
Bonus rate 10%
Bonus 6162.7

sales 300,000
less: sales return and allowances -3,000
net sales 297,000
purchases 180,000
less: ending inventory -50,000 -130,000
Gross profit 167,000
less: expenses
operating expenses 48,000
Accrued expense 400
depreciation expense 4,000
less: office suuplies -810
Prepaid insurance -1,200 -50,390
income before tax 116,610
30% income tax rate (expense) -34,983
PROFIT FOR THE YEAR 81,627
137,458
 140,000 120,000

opening balnce & add inv 180,000 180,000

salary allowances -60,000 -60,000
120,000 120,000
120k x 60% = 72,000 120k x 40% =48,000
capital bal 20,000 40,000
add inv 12,000
withdrawals -12,000
drawing account (debit bal) 5,000 3,000
37,000 31,000
76,250 38,125 38,125
38,125 75,125 69,125

Capt. Bal Months Total wac

20,000 6 120,000
12,000 6 72,000
5,000 0 0
12 192,000 16,000

Capt. Bal Months Total wac

40,000 7 280,000
28,000 5 140,000
3,000 0 0
12 420,000 35,000
51,000

Capt. Bal Months Total wac

40,000 7 280,000
28,000 5 140,000
3,000 0 0
12 420,000 35,000

Capt. Bal Months Total wac

20,000 6 120,000
30,000 3 90,000
40,000 5 200,000
14 410,000 34,167
Capt. Bal Months Total
50,000 5 250,000
90,000 5 450,000
65,000 2 130,000
12 830,000 69,167
103,333