200; E, P34,100; F, P29,700

D
E
F
Total
Salaries
25,000
20,000
25,000
70,000
Bonus on income (10% x P130,000)
13,000
13,000
Remainder (6:3:1)
28,200
14,100
_4,700
47,000
66,200
34,100
29,700
130,00024. a
C
W
N
Total
Capital, 1/1/x4
100,000
150,000
200,000
450,000
Net Income – 20x4
29,000
63,000
58,000
150,000
Withdrawal – personal
(12,000)
(12,000)
(12,000)
(36,000)
Capital, 12/31/x4
117,000
20,100
24,600
564,000
Net income – 20x4
C
W
N
Total
10% interest on beginning capital
10,000
15,000
20,000
45,000
Salary
-
10,000
-
10,000
20% : 40% : 40%
19,000
38,000
38,000
95,000
29,000
63,000
58,000
150,000
Capital, 1/1/x5
117,000
201,000
246,000
564,000
Net income
34,420
75,540
70,040
180,000
Withdrawals – personal
(12,000)
(12,000)
(12,000)
(36,000)
Capital, 12/31/x5
139,420
264,540
304,040
708,000
Net income – 20x5
117,000
201,000
246,000
564,000
10% interest a beginning capital
34,420
75,540
70,040
180,000
Salary
(12,000)
(12,000)
(12,000)
(36,000)
20% : 40% : 40%
139,420
264,540
304,040
708,000
25. d - refer to No.24
26. b - refer to No.24
27. c - refer to No.24
28. b
Y
E
I
Total
Capital, 1/1/YearI
143,000
104,000
143,000
390,000
Net income (loss)
(11,700)
(10,400)
(3,900)
(26,000)
Withdrawals – personal
(13,000)
(13,000)
(13,000)
(39,000)
Capital, 12/31/ Year I
118,300
80,600
126,100
325,000
Year I Net loss
Salary
26,000
-
13,000
3,900
Interest – 10% x beginning capital
14,300
10,400
14,300
3,900
5:2:3
(52,000)
(20,800)
(31,200)
(10,400)
Total
(11,700)
(10,400)
(3,900)
(2,600)
Capital, 1/1/Year2
118,300
80,600
126,100
325,000
Net income (loss)
28,080
76,700
19,760
52,000
Withdrawals – personal
(13,000)
(13,000)
(13,000)
(3,900)
Capital, 12/31/ Year 2
133,380
144,300
132,860
338,000
Year 2 Net loss
26,000
-
13,000
3,900
Salary
11,830
8,060
12,610
32,500
Interest – 10% x beginning capital
(9,750)
(3,900)
(5,850)
(19,500)5:2:3
28,080
76,700
19,750
52,000
29. d - refer to No.28
30. c - refer to No.28
31. a - refer to No.28
32. d
Because both partners have equal capital balances, NN's capital has to be increased to
equal that of MM's. Since MM's capital balance is P60,000 and NN's is P20,000, an additional
P40,000 has to be credited to NN's capital to make it equal MM's capital. This additional
amount credited to NN's capital is the goodwill that NN is bringing to the partnership.
33. a - MM's share of the net income of P25,000 is 60%, or P15,000.
34. b
2/1/20x4: P20,000 x 4 = P 80,000
6/1/20x4: P40,000 x 3 = 120,000
9/1/20x4: P30,000 x 4 = 120,000
P 320,000 / 12 months = P26,667
Note: Annual - 12 months.
35. b
Interest: (P500,000 x 10%) = P50,000
Salary: (P10,000 + P20,000) = P30,000
Bonus: Condition not met = P0
Total allocations = P80,000 and over-allocations =
P80,000 - P60,000 = P20,000
36. b
Bloom: