1.

Partner Alta had a capital balance on January 1, 20x4 of P45,000 and made
additional capital contribution during 20x4 totaling P50,000. During the year
2ox4, Alta withdrew P8,000 per month. Alta’s post-closing capital balance on
December 31, 20x4 is P30,000. Alta’s share of 20x4 partnership income is:
a. P96,000 c. P31,000
b. P50,000 d. P8,000

2. Partners A and B have a profit and loss agreement with the following provisions:
salaries of P20,000 and P25,000 for A and B, respectively; a bonus to A of 10%
of net income after bonus; and interest of 20% on average capital balances of
P40,000 and P50,000 for A and B, respectively. Any remainder is split equally. If
the partnership had net income of P88,000, how much should be allocated to
Partner A?
a. P36,000 c. P50,000
b.
c. P44,500 d. P43,500

3.BB and GG formed a partnership in 20x4. The partnership agreement provides for
annual salary allowances of P55,000 for BB and P45,000 for GG. The partners
share profits equally and losses in a 60:40 ratio. The partnership had earnings of
P80,000 for 20x5 before any allowance to partners. What amount of these earnings
should be credited to each partner’s capital account?

Blue Green Blue Green

a. P40,000 P40,000 c. P44,000 P36,000
b. P43,000 P37,000 d. P45,000 P35,000

4. Partners A and B have a profit and loss agreement with the

followingprovisions: salaries of P30,000 and P45,000 for A and B,
respectively;a bonus to A of 12% of net income after salaries and bonus;
andinterest of 10% on average capital balances of P50,000 and P65,000 forA
and B, respectively. One-fourth of any remaining profits areallocated to A and
the balance to B. If the partnership had net incomeof $108,600, how much
should be allocated to Partner A?
a. P43,225 c. P47,850
b. P43,816 d. P65,375
 5. Partners A and B have a profit and loss agreement with the
followingprovisions: salaries of P40,000 and P45,000 for A and B,
respectively;a bonus to A of 10% of net income after salaries and bonus;
andinterest of 15% on average capital balances of P40,000 and P60,000 forA
and B, respectively. One-third of any remaining profits or losses areallocated
to B and the balance to A. If the partnership had net incomeof P52,000, how
much should be allocated to Partner A?
a. P14,000 c. $38,000
b. P30,000 d. None of the above

6. Partners Acker, Becker & Checker have the following profit and loss agreement:
a. Acker & Becker receive salaries of P40,000 each
b. Checker gets a bonus of 10 percent of net income after salaries
andbonus (the bonus is zero if salaries exhaust net income)
c. Remaining profits are shared by Acker, Becker & Checker in
thefollowing ratios respectively: 3:4:3.The partnership had a net
income of P91,000. How much should be allocated to Checker?
a. P3,300 c. P1,000
b. P10,300 d. P4,000

7. Partners A and B have a profit and loss agreement with the following provisions:
salaries of P41,600 and P38,400 for A and B, respectively; a bonus to A of 10% of net
income after salaries and bonus; and interest of 10% on average capital balances of
P20,000 and P35,000 for A and B, respectively. One-third of any remaining profits are
allocated to A and the balance to B. If the partnership had a net in-come of P36,000,
how much should be allocated to Partner A?
a. P12,000 c. P27,100
b. P18,000 d. P41,600

8. Partners Tuba and Drum share profits and losses of their partnershipequally after 1)
annual salary allowances of P25,000 for Tuba and P20,000 for Drum and 2) 10%
interest is provided on average capital balances. During 20X4, the partnership had
earnings of P50,000; Tuba's average capital balance was P60,000 and Drum's average
capital balance was P90,000. How should the P50,000 of earnings be divided?
Tuba Drum Tuba Drum
a.P 26,000 P24,000 c.P25,000 P25,000
b.P27,000 P23,000 d.P27,500 P22,500
9. Mack and Ruben are partners operating an electronics repair shop. For 20x4, net
income, after salaries expense of P150,000 was P50,000. Mack and Ruben have salary
allowances of P90,000 and P60,000,respectively, and remaining profits and losses are
shared 6:4.The division of salaries and profits in total to Mack and Ruben would be:
a. P30,000 and P20,000 c. P120,000 and P80,000
b. P50,000 and P-0- d. P25,000 and P25,000

10. Robbie and Ruben are partners operating a portable toilet lease and maintenance
operation. For 20x4,net income was P50,000 (without taking into consideration the
salary allowances). Robbie and Ruben have salary allowances of P90,000 and
P60,000, respectively, and remaining profits and losses are shared 6:4. If their
agreement specifies that salaries are allowed only to the extent of income, based on a
prorata share oftheir salary allowances, the division of profits would be:

a. $20,000 and $30,000 c. P30,000 and P20,000

b. $50,000 and $-0- d. P25,000 and P25,000

11. James has a bonus as part of his partner profit allocation. The bonus is based on
the partnerships net income. James receives a bonus equal to 5 percent that the net
income exceeds P150,000. If the net income in the current year is P180,000, How much
does James receive?

a. P30,000 c. P7,500
b. P9,000 d. P1,500

12. Cheryl is the manager of a local store. She is also a partner in the company and she
receives a bonus as part of the profit and loss allocation. Cheryl’s bonus is based on the
increase in revenues recorded during the period. The bonus arrangement is that Cheryl
receives 1 percent of net income for every full percentage point growth for revenues in
excess of a 5 percent revenue growth. During the most recent period , revenues grew
from P500,000 to P540,000 and net income grew from P98,000 to P120,000. How
much bonus does Cheryl receive for ths period?

a. P1,100 c. P3,600
b. P2,000 d. P6,000
Cleary, Wasser, and Nolan formed a partnership on January 1, 20x4, with investments
of P100,000, P150,000, and P200,000, respectively. For division of income, they agreed
to (1) interest of 10% of the beginning capital balance each year, (2) annual
compensation of P10,000 to Wasser, and (3) sharing the remainder of the income or
loss in a ratio of 20% for Cleary, and 40% each for Wasser and Nolan. Net income was
P150,000 in 2012 and P180,000 in 20x5. Each partner withdrew P1,000 for personal
use every month during 20x4 and 20x5.

17. What was Wasser’s share of income for 20x4?

a. P63,000 d. P29,000
b. P53,000 e. P51,000
c. P58,000
18. What was Nolan’s capital balance at the end of 20x4?

a. P200,000 d. P246,000
b. P224,000 e. P254,000
c. P238,000
19. What was Cleary’s share of income for 20x5?

a. P34,420 d. P70,040
b. P75,540 e. P61,420
c. P65,540
20. What was Wasser’s capital balance at the end of 20x5?

a. P201,000 d. P304,040
b. P263,520 e. P313,780
c. P264,540