THREE B's Partnership was formed on January 1, 2018.

They had the following transactions affected their respective investme

B1 B2 B3
Initial investment 200,000 300,000 450,000
June 30, 2018 120,000
September 30, 2018 -140,000
The partnership agreement states the profit and losses are to be shared equally by the partners after consideration is made fo
A. Salary allowance of 120,000 for B1; 96,000 for B2; and 72,000 for B3.
B. Average partner's capital balances during the year shall be allowed 10% interest.
C.Share on the remaining partnership profit was 10,000 for each partner.
1. Compute for the total interest on average capital balances of the partners.
2. Compute for the total partnership profit before distribution.
3. Compute for the total partnership capital on Dec. 31, 2018.
4. Bolano, Valer, and Pensan are partners in accounting firm. Their capital account balances at year-end were 180,000, 220,00
A.Pensan is to receive a bonus of 10 of profit after bonus.
B. Interest of 10% shall be paid on that portion of a partner's capital in excess of 200,000.
C. Salaries of 20,000 and 24,000 shall be paid to partners Bolano and Pensan, respectively.
Assuming a net profit of 220,000 for the year, compute for the total share in profit of Pensan.
5. Partnership aggreement between Belano and Belardo stipulates that Belano is to receive a 20% bonus on profits before bon

6. On jan. 1, 2019, Bayani and Balagtas decided to form a partnership. At the end of the year, the partnership made a profit of
Bayani, Capital Balagtas, Capital
Debit Credit Debit Credit
Jan-01 80,000 50,000
Apr-01 10,000
Jun-01 20,000
Aug-01 20,000
Sep-01 6,000
Oct-01 10,000 2,000
Dec-01 8,000 10,000
Assuming that the profit of the partnership is divided on the basis of average capital ratio, compute for the share in profit of B
d their respective investment accounts:

er consideration is made for the following:

-end were 180,000, 220,000 and 110,000 respectively. They share profits and losses on a 4:4:2 ratio, after considering the following terms

bonus on profits before bonus with residual profit and loss to be apportioned in the ratio of 2:3, respectively. Which partner has a greater

artnership made a profit of 240,000. The capital accounts of the partnership show the following transactions;

for the share in profit of Bayani and Balagtas

nsidering the following terms;

. Which partner has a greater advantage when the partnership has a profit and when it incures a loss?
 Schedule for profit or loss distribution
B1 B2 B3 Partnership
A. Salary Allocation 120,000 96,000 72,000 288,000
B. Interest Allocation 26000 26,500 45,000 97,500 1
Bonus allocation 0 Beg. Bal
C. Remainder 10,000 10,000 10,000 30,000 Add'l
Net Profit or loss 156,000 132,500 127,000 415,500 2 End, Bal
Profit or Loss
End, Bal

4 Schedule for profit or loss distribution

Bolano Valer Pensan Partnership
Salary Allocation 20,000 24,000 44000 C
Interest Allocation 22000 22000 B
Bonus allocation 11,000 11000 A
Remainder 0
Net profit or loss 20,000 22,000 35,000 77,000

Total share in profit of pensan 44000

Statement of Changes in Partnership Equity
B1 B2 B3 Partnership
200,000 300,000 450,000 950,000
120,000 -140,000 -20,000
320,000 160,000 450,000 930,000
156,000 132,500 127,000 415,500
476,000 292,500 577,000 1,345,500 3

5. Belano has the greater advantage when the partnership has a profit and when incurs a loss because of the apportioned rati

6 Bayani, Capital Balagtas, Capital Bayani, Capital Balagtas, Capital

Debit Credit Debit Credit 240000 250000
Jan-01 80,000 50,000 280000 210,000
Apr-01 10,000 180000 64,000
Jun-01 20,000 200000 124,000
Aug-01 20,000 108000 72000
Sep-01 6,000 84000 60000
Oct-01 10,000 2,000
Dec-01 8,000 10,000 Average capital

Total partnership average capital

Bayani's Share capital
Balagtas Share Capital

Bayani's share in profit 139200

Balagtas' share in profit 100800
ecause of the apportioned ratio they have in their agreement. Since it is apportioned in the ratio of 2:3, although the profit is not higher as

Balagtas, Capital

Average Capital

144000
58%
42%
ugh the profit is not higher as much as Belardo, it cannot change the fact that when they incurred a loss, his profit will not be affect as mu
profit will not be affect as much as Belardo would have. Reason why he has a greater advantage rather than his partner - Belardo.
n his partner - Belardo.