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Dondoyano and Dellosa Partnership Summary

1. The statement of comprehensive income for Dondoyano and Dellosa for the year ended December 31, 2010 showed net income of P39,450. 2. Dondoyano's share of profits was P34,573 and Dellosa's share was P4,877. 3. The statement of changes in partners' equity showed Dondoyano's ending capital balance as P139,573 and Dellosa's ending capital balance as P49,877.

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0% found this document useful (0 votes)

1K views3 pages

Dondoyano and Dellosa Partnership Summary

Uploaded by

Rudy Lugas

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Download as DOCX, PDF, TXT or read online on Scribd

Partnership Entry Details
Statement of Comprehensive Income
Statement of Changes in Partners' Equity

Dondoyano and Dellosa

Dondoyano and Dellosa entered into a partnership on Mar. 1,2010 by investing

P125,000 and P75,000, respectively They agreed that Dondoyano, as managing
receive a salary of P30,000 per year and a bonus computed at 10% of the " after
salaries; the balance of the profit is to be distributed in the ratio of their original capital
contributions.

On Dec. 1. 2010, the account balances were as follows:

P 70,000 Cash
67,000 Accounts Receivable
45,000 Furniture and Fixtures
5,000 Sales Returns
196,000 Purchases
60,000 Operating Expenses
60,000 Accounts Payable
233,000 Sales
125,000 Dondoyano, Capital
75,000 Dellosa, Capital
20,000 Dondoyano, Drawing
30,000 Dellosa, Drawing

Inventories on Dec 31, 2010 were as follows: supplies, P2,500 ; merchandise, P73,000,
Prepaid insurance was P950 while accrued expenses were P1,550. Depreciation rate
was 20% per year.

Required:
1. Prepare the statement of comprehensive income and distribute the profit.
2. Compute for the partners' ending capital balances.
1.
Dondoyano and Dellosa
Statement of Comprehensive Income
Year End of December 31, 2010

Note
Net Sales 1 P 228,000
Cost of goods sold 2 (123,000)
Gross Profit P 105,000
Less: Operating Expenses 3 (65,550)
Net Income P 39,450

Net Sales 1
Sales P233,000
Less: Sales Return (5,000)
Net Sales P228,000

Cost of goods sold 2

Purchase P196,000
Less: Ending Inventory (73,000)
Cost of goods sold P123,000

Operating Expense 3
Unadjusted Balance P60,000
Accrued Expense 1,500
Prepaid Insurance (950)
Supplies (2,500)
Depreciation (45k*20%*10/12) 7,500
Adjusted Balance P65,550

Adjusting Entry:

1. Operating Expense 1,500

Accrued Expense 1,500
To recognized expense accrued.

2. Prepaid Insurance 950

Operating Expense 950
To recognized prepaid insurance.

3. Supplies 2,500
Operating Expense 2,500
To record unused supplies.

Distribution to Profit or Losses

Dondoyano Dellosa Total
Salary (30,000 * 10/12) P 25,000 P 25,000
Bonus (39,450-25,000 * 10%) 1,445 1,445
Balance to be Divided based on their
Original capital contributions
(39,450-25,000-1,445=13,005)
Dondoyano: 13,005*125K/200K 8,128 8,128
Dellosa : 13,005*75k/200k P4,877 4,877
Share of Partners in Profits P 34,573 P4,877 P39,450