The document discusses various methods for allocating partnership profits and losses between two partners, Robin Padilla and Batman Caster, based on their individual capital contributions and other agreements. It provides their beginning and ending capital balances for the year and asks to prepare journal entries allocating a $600,000 profit under 11 different assumptions that vary how the profit is divided between the partners based on factors like an equal split, pre-determined ratios, salaries, bonuses, interest on capital, and beginning or ending capital balances.
The document discusses various methods for allocating partnership profits and losses between two partners, Robin Padilla and Batman Caster, based on their individual capital contributions and other agreements. It provides their beginning and ending capital balances for the year and asks to prepare journal entries allocating a $600,000 profit under 11 different assumptions that vary how the profit is divided between the partners based on factors like an equal split, pre-determined ratios, salaries, bonuses, interest on capital, and beginning or ending capital balances.
The document discusses various methods for allocating partnership profits and losses between two partners, Robin Padilla and Batman Caster, based on their individual capital contributions and other agreements. It provides their beginning and ending capital balances for the year and asks to prepare journal entries allocating a $600,000 profit under 11 different assumptions that vary how the profit is divided between the partners based on factors like an equal split, pre-determined ratios, salaries, bonuses, interest on capital, and beginning or ending capital balances.
The document discusses various methods for allocating partnership profits and losses between two partners, Robin Padilla and Batman Caster, based on their individual capital contributions and other agreements. It provides their beginning and ending capital balances for the year and asks to prepare journal entries allocating a $600,000 profit under 11 different assumptions that vary how the profit is divided between the partners based on factors like an equal split, pre-determined ratios, salaries, bonuses, interest on capital, and beginning or ending capital balances.
✓ Jokes ✓ Tagalog ✓ Stories ✓ Legit Professor ✓ Life Lessons
----------------------------------------------------------------------------------------------------------------- Lecture 04: Partnership Operations Division of Profits and Losses -----------------------------------------------------------------------------------------------------------------
The following data are available in the books of Robin Padilla
and Batman Caster Partnership for the year 2021. Padilla, Capital May 1 100,000 Jan 1 2,500,000 Apr 1 250,000 Oct 1 500,000
Caster, Capital June 1 150,000 Jan 1 1,500,000 Dec 1 50,000 Sept 1 500,000
Prepare the entry to record the allocation of the partnership
profit (600,000) to individual capital accounts under each of the following assumptions: 1. Profit is divided equally 2. Profit is divided in the ration of 3:4 to Robin and Batman 3. There is no profit sharing agreement 4. Profit is allocated based on the beginning capital ratio 5. Profit is allocated based on the ending capital ratio 6. Profit is allocated based on the average capital ratio 7. Each profit is allowed 10% interest on ending capital and the remaining income is divided on 60%, 40%. 8. Robin is allowed 350,000 salaries and the remaining profit divided in the ratio of 1:4 9. Batman, the managing partner, is allowed a bonus of 20% of profit before bonus and tax and the remainder is divided in the ratio of beginning capital Sir Win – Accounting Lectures ✓ Jokes ✓ Tagalog ✓ Stories ✓ Legit Professor 10. The partners ✓ Life are allowed 5,000 and 10,000 weekly Lessons salaries respectively, 10% interest on average capital, and the remainder is divided in the ratio of 2:3 11. Assume the same agreement as in #10 except that instead of a profit, the partnership has incurred a loss of 100,000.
