Ramon Magsaysay Memorial Colleges

Bachelor of Science in Accountancy Program

Pioneer Ave., General Santos City
Tel. No. 552-3348

Name: ______________________________ Date: ___________ Score: _____________

Subject : ACCTG 13- Accounting for Part and Corp. Prelim Quiz
Instructor: Mrs. Marivic B. Peñ aflor, CPA, MBA AY: 2021-2022 FIRST SEMESTER

1. In the calendar year 2014, the partnership of A and B realized a net profit of P 240,000. The capital accounts of the
partners show the following postings:
A capital B, capital
Debit Credit Debit Credit
Jan. 120,000 80,000
May1 20,000 10,000
July 1 20,000
Aug 1 10,000
Oct 1 10,000 5,000

a. If the profits are to be divided based on average capital, the share of A and B, respectively are :

No. of Months
Debit Credit Balances Unchanged Peso Unit

Jan-01 120,000 120,000 x 4 480,000

May-01 20,000 100,000 x 3 300,000
Aug-01 10,000 110,000 x 2 220,000
Oct-01 10000 100,000 x 3 300,000
12 1,300,000
÷ 12

No. of Months
Debit Credit Balances Unchanged Peso Unit

Jan-01 80,000 80,000 x 4 320,000

May-01 10,000 70,000 x 2 140,000
Jul-01 20,000 90,000 x 3 270,000
Oct-01 5,000 85,000 x 3 255,000
12 985,000
÷ 12

108,333 + 82,083 = 190,416

108,333 x 240,000 = 136,543
190,416
82,083
190,416 x 240,000 = 103,457
b. If 20% interest based on the capital at the end of the year is allowed and given and the balance of the
240,000 profit is divided equally, the total share of A and B, respectively are:

Ending Capital of A = 100,000 x 20% = 20,000

Ending Capital of B = 85,000 x 20% = 17,000

A B TOTAL
INTEREST 20,000 17,000 37,000
101,50
REMAINDER: 50:50 0 101,500 203,000
121,50
SHARE OF PARTNERS 0 118,500 240,000

c. Prepare journal entry to record the distribution of profit of each of the given case.

Case A
INCOME SUMMARY 240,000
A, DRAWING 136,543
B, DRAWING 103,457

Case B
INCOME SUMMARY 240,000
A, DRAWING 121,500
B, DRAWING 118,500
2. In the calendar year 2017, the partnership of Ana and Fe show the postings on their capital accounts presented
below:

Ana, capital Fe, capital

Debit Credit Debit Credit
Jan. 180,000 130,000
June 1 20,000 30,000
August 1 15,000
Oct 1 10,000
Nov 1 10,000 5,000

A. For each of the following independent profit and loss agreement cases, prepare a schedule to distribute
profit: ( 5 pts each)

1. Salaries are provided to Ana of 30,000 and 20,000 to Fe. Ana receives a bonus of 5 % of profit after bonus. Interest
of 10% based on ending capital balances and remainder will be shared on the ratio of 3:2. Profit for distribution
was P 500,000.

Ending Capital of Ana = 160,000 x 10% = 16,000

Ending Capital of Fe = 140,000 x 10% = 14,000

BONUS COMPUTATION
500,000 / 105% X 5% = 23,809.52

Ana Fe TOTAL
SALARIES 30,000 20,000 50,000
INTEREST 16,000 14,000 30,000
BONUS 23,810 23,810
REMAINDER: 3:2 237,714 158,476 396,190
SHARE OF PARTNERS 307,524 192,476 500,000
2. Ana receives a bonus of 10% of profit after bonus and salaries. Salaries are P 40,000 to Ana
and 30,000 to Fe. Interest of 10% based on average capital balances and any remainder will be divided equally.
Profit for distribution was P 680,000.

No. of Months
Debit Credit Balances Unchanged Peso Unit

Jan-01 180,000 180,000 x 5 900,000

Jun-01 20,000 160,000 x 4 640,000
Oct-01 10,000 170,000 x 1 170,000
Nov-01 10,000 160,000 x 2 320,000
12 2,030,000
÷ 12

No. of Months
Debit Credit Balances Unchanged Peso Unit

Jan-01 130,000 130,000 x 5 650,000

Jun-01 30,000 160,000 x 2 320,000
Aug-01 15,000 145,000 x 3 435,000
Nov-01 5,000 140,000 x 2 280,000
12 1,685,000
÷ 12

BONUS COMPUTATION
680,000 – 70,000 = 610,000 / 110% X 10% = 55,454.55

Ana Fe TOTAL
SALARIES 40,000 30,000 70,000
INTEREST 16,917 14,042 30,959
BONUS 55,455 55,455
REMAINDER: 50:50 261,793 261,793 523,586
SHARE OF PARTNERS 374,165 305,835 680,000
3. Both Ana and Fe are given an interest of 10% based on their respective average capital
balances, salaries of P 80,000 and 60,000 are given respectively. Ana receives a bonus of 15% of profit after
interest salaries and bonus and any remainder will be divided equally. Profit for distribution was P 400,000.

BONUS COMPUTATION
400,000 – 140,000 - 30,959 = 229,041 / 115% X 15% = 29,874.91

Ana Fe TOTAL
SALARIES 80,000 60,000 140,000
INTEREST 16,917 14,042 30,959
BONUS 29,875 29,875
REMAINDER: 50:50 99,583 99,583 199,166
SHARE OF PARTNERS 226,375 173,625 400,00

B. Prepare journal entry to record the distribution of profit of each of the given case. (2 points each)

Case A
INCOME SUMMARY 500,000
A, DRAWING 307,524
B, DRAWING 192,476

Case B
INCOME SUMMARY 680,000
A, DRAWING 374,165
B, DRAWING 305,835

Case A
INCOME SUMMARY 400,000
A, DRAWING 226,375
B, DRAWING 173,625