PROBLEM E
BORRES 250,000.00 25/50 X 600,000
BUENDIA 150,000.00 15/50 X 600,000
BUSTOS 100,000.00 10/50 X 600,000
500,000.00
BORRES 3/4 75% 75/150
BUENDIA 1/4 25% 25/150
BUSTOS 1/2 2/4 50% 50/150
150%
3.00 3/6
1.00 1/6
2.00 2/6
6.00
PROBLEM D
BANS 48,000.00 X 2/3 32,000.00
BELDA 48,000.00 X 1/3 16,000.00
BANS BELDA TOTAL
CAP. BALANCE BEG. 120,000.00 118,000.00 238,000.00
SHARE -LOSS - 32,000.00 - 16,000.00 - 48,000.00
BALANCE- END 88,000.00 102,000.00 190,000.00
2.00 1.00
BANS BELDA
CAP. BALANCE BEG. 120,000.00 118,000.00
ADDITIONAL INVESTMENT 50,000.00 50,000.00
WITHDRAWALS - 20,000.00 - 20,000.00
SHARE-LOSS - 32,000.00
118,000.00 148,000.00
PROBLEM C
BERNAL
NO. OF
MONTHS
PERIOD BALANCE UNCHANGED PESO MONTH
JAN 1- MAY30 360,000.00 5 1,800,000.00
MAY 31-OCT 30 460,000.00 5 2,300,000.00
OCT 31-DEC. 31 400,000.00 2 800,000.00
4,900,000.00 /12
BURGOS
NO. OF
MONTHS
PERIOD BALANCE UNCHANGED PESO MONTH
JAN 1-JUNE 29 440,000.00 6 2,640,000.00
JUNE 30-OCT 30 360,000.00 4 1,440,000.00
OCT 31-DEC 31 500,000.00 2 1,000,000.00
5,080,000.00
12.00
BERNAL BURGOS TOTAL
SALARY 50,000.00 100,000.00 150,000.00
10% INTEREST AVE. CAP. 40,833.33 42,333.33 83,166.67
REMAINDER 46,733.33 70,100.00 116,833.33
137,566.67 212,433.33 350,000.00
BERNAL BURGOS TOTAL
8% INTEREST 28,800.00 35,200.00 64,000.00
SALARY 50,000.00 50,000.00 100,000.00
BONUS 18,600.00 18,600.00
REMAIDER 66,960.00 100,440.00 167,400.00
164,360.00 185,640.00 350,000.00
B= 10% ( INCOME-SALARIES-INTEREST)
.10( 350000-64000-100000)
18,600.00
net PROFIT 450,000.00 30% INCOME TAX.
15% ON PROFIT AFTER TAX BUT BEFORE BONUS
INCOME BEFORE TAX 642,857.14 100%
LESS: INCOME TAX 192,857.14 30%
Net profit 450,000.00 70%
b= 15% (450,000-135,000)
15% (315,000)
47,250.00
15 % of profit after bonus but before tax
b= 15% ( 642,857.14 -b)
b= 96,428.57 -.15 b
b+.15b 96,428.57
b= 83,850.93
15% of profit after tax and after bonus
b= 15% ( income- tax- bonus)
b= 15% (450,000-b)
b= 67,500.00 -.15b
b + 1.15b = 67,500.00
b 58,695.65
net profit earned by ANB trading house is 725,000. The company is a mechrandising enaged in selling surplus fur
and is subject to 30% income tax.
one of the agreement of the partners is to give bonus to partner A, managing partner, 9% to be based
profit before tax and after bonus
b= 9% ( income-bonus) INCOME BEFORE TAX
b = 9% (1,035,714.29 -b) LESS: INCOME TAX
b= 93,214.29 -.09b Net profit
b + .09b= 93,214.29
b 85,517.69
PROBLEM A
Balte Bala Total
8% intetrest on capital balances 40,000.00 24,000.00 64,000.00
Salary 120,000.00 80,000.00 200,000.00
Bonus 238,000.00 238,000.00
Balance 430,000.00 258,000.00 688,000.00
828,000.00 362,000.00 1,190,000.00
Income summary 1,190,000.00
Balte, drawings 828,000.00
Bala, drawings 362,000.00
Balte and Bala Partnership
Statement of Changes in Partners' Equity
For the year Ended December 31, 2014
Balte Banal Total
Equity, January 1 500,000.00 300,000.00 800,000.00
Add: Profit share 828,000.00 258,000.00 1,086,000.00
Total 1,328,000.00 558,000.00 1,886,000.00
Less: Drawings 60,000.00 100,000.00 160,000.00
Equity, December 31 1,268,000.00 458,000.00 1,726,000.00
Problem B
1. Profit is divided 60% to Bondoc and 40% to Barba.
BONDOC 60% X 300,000 180,000.00
BARBA 40% X 300,000 120,000.00
2. Profit is divided in the ratio of capital balances at the beginning of the period.
BONDOC 210,000.00 21/36 X 300,000 175,000.00
BARBA 150,000.00 15/36 X 300,000 125,000.00
360,000.00 300,000.00
3. Profit is divided in the ratio of average capital.
BONDOC
NO OF MOS
PERIOD BALANCE UNCHANGED PESO MO.
JAN.1 TO APRIL 30 210,000.00 4 840,000.00
MAY 1 TO SEPT 30 300,000.00 5 1,500,000.00
240,000.00 3 720,000.00
3,060,000.00
/12 255,000.00
BARBA
NO OF MOS
PERIOD BALANCE UNCHANGED PESO MO.
JAN 1 TO MAR 31 150,000.00 3 450,000.00
APRIL 1 TO DEC. 31 120,000.00 9 1,080,000.00
1,530,000.00
/12 127,500.00
382,500.00
BONDOC 255,000/382,500 X 300,000 200,000.00
BARBA 127,500/382,500 X 300,000 100,000.00
4. Interest at 8% is allowed on average capital and the balances of profit is divided equally.
BONDOC BARBA TOTAL
8% INTEREST 20,400.00 10,200.00 30,600.00
BALANCE 134,700.00 134,700.00 269,400.00
155,100.00 144,900.00 300,000.00
5. Salaries of P60,000 and P48,000 are allowed to Bondoc and Barba respectively and the balance of profit in the
ratio of capital balances at the end of the period.
BONDOC BARBA TOTAL
SALARY 60,000.00 48,000.00 108,000.00
BALANCES 128,000.00 64,000.00 192,000.00
188,000.00 112,000.00 300,000.00
6.
BONDOC BARBA TOTAL
BONUS 75,000.00 75,000.00
BALANCE 150,000.00 75,000.00 225,000.00
225,000.00 75,000.00 300,000.00
B= 331/3% (INCOME-BONUS)
B= 331/3% (300,000-B) BONDOC 255,000.00
B= 100,000 - .331/3B BARBA 127,500.00
B+ .331/3b 100,000.00 382,500.00
B= 75,000.00
PROBLEM F
1. Net profit 400,000.00
Add/deduct adjustments:
Accrued expense 2018 24,000.00
Inventory overstatement - 62,000.00
Understated Purchases - 40,000.00
Income not adjusted 2018 30,000.00
Unused supplies 18,000.00 - 30,000.00
Adjusted net profit 370,000.00
2. Net profit 400,000.00
Add/deduct adjustments:
Accrued expense 2018 24,000.00
Inventory overstatement - 62,000.00
Understated Purchases - 40,000.00
Income not adjusted 2018 30,000.00
Unused supplies 18,000.00
- 30,000.00
Multiply it by 70% - 21,000.00
Adjusted net profit 379,000.00
another way of solving it:
Profit before tax 400k/70% 571,428.57
Add/deduct adjustments:
Accrued expense 2018 24,000.00
Inventory overstatement - 62,000.00
Understated Purchases - 40,000.00
Income not adjusted 2018 30,000.00
Unused supplies 18,000.00 - 30,000.00
Adjusted profit before tax 541,428.57
Less: income tax 30% x 541,428.57 162,428.57
Adjusted net profit 379,000.00
300,000.00
180,000.00
120,000.00
600,000.00
X 600,000 300,000.00
X 600,000 100,000.00
X 600,000 200,000.00
32000/ 2/3 48,000.00
408,333.33
423,333.33
SUPERMARKET
450,000/ 70%
enaged in selling surplus furnitures.
ging partner, 9% to be based on
OME BEFORE TAX 1,035,714.29
S: INCOME TAX 310,714.29
725,000.00 70%
e balance of profit in the