PARTNERSHIP FORMATION

1.

900,000 = x + 4.5x + .40(4.5x)

900,000 = x + 4.5x + 1.8x
900,000 = 7.3x
2.

Net Assets = 900,000

Liabilities = 20,000 + 30,000

TOTAL ASSETS 950,000

3.

Option 1 = 140,000 Salary

Option 2 = 87,500 Salary
52,500 Bonus

B = 10% (NI – B – S )
52,500 = 10% (NI – 52,500 – 87,500 – 350,000)
10% (NI – 490,000)
52,500 = 10% NI – 49,000
52,500 + 49,000 = 10% NI
101,500 = 10%NI
10%

1,015,000 = NI
4.

Bonus = 15% NIBSBI Karl

NIASBI = 1,530,000 Salary 400,000

Salary = 1,270,000 Bonus 525,000
Interest = 175,000 Interest 55,000 (550,000 x 10%)
2,975,000 Remainder 765,000 (1,530,000X3/6)
÷ 85% 1,745,000
NIBSBI = 3,500,000 (100%)
X 15%
B = 525,000
5.

Tina April Jen

Cash 75,000
Property 120,000
Mortgage (52,500)
Equipment 82,500
75,000 67,500 82,500
6.

Option 1 = 52,000 Bonus = 10% (NI – S – B)

Option 2 = Salary 40,000 = 10% [NI – (30,000+40,000) – 24,000]
= 10% (NI – 94,000)
Bonus 12,000
24,000 = 10%NI – 9,400
24,000+9,400 = 10%NI
D 12,000 33,400 = 10%NI
Bonus = 24,000 10%
G 12,000 334,000 = NI
 8.

Bitter Anger
50,000 75000
12,000 (7,000)
(11,800) (17,700) Loss 29,500
50,200 50,300 = 105,000

105,000
B A
X 1/3
Interest 13,400 20,100
33,500 Interest
(24,000) Payment of Emoted Loss (3,800) (5,700)
9,500 loss 9,600 14,400
9.

Bel Joy Franco

Cash 50,000 80,000 25,000
Computer 25,000 60,000
TOTAL 75,000 80,000 85,000
10.

Example= P100 Bing Bong Profit

PL % 2/5=40% 3/5=60%

20%Bonus 20 - 20
Share in Profit 32 48 80
(40:60/2:3)
52 48 100

B. Profit: Bing
loss: Bing because 2/5 is lesser than 3/5 in case of loss
11.

Kathy’s interest = 135,000 (40%) (60%)

Amount paid = 132,000 Karen Karmi
3,000 1,200 800

Old% New%
Karen 20% 40%
Karmi 30% 60%
Kathy 50% -
100% 100%
 12.

Ending Balance, 2012 120,000 * Emily Mel Total

Share in net loss* (16,400) Interest 5,000 7,200 12,200
Adjusted Capital 103,600 Salaries 25,000 35,000 60,000
Beginning Balance, 2012 (70,000) Bonus - - -
Net Increase 33,600
Remainder(equally) (58,600) (58,600) (117,200)

Net Loss (28,600) -16,400 (40,000)

13.

Unadjusted Capital Balance 90,000

Withdrawal of Salary (59,000)
31,000
Share in Profit 93,800*
Adjusted Balance 124,800

* Rome Matt Total

Salaries 34,000 59,000 93,000
Remainder(3:2) 52,500 34,800 87,000
86,200 *93,800 180,000
14.

Net Income 150,000 120,000 NIASBB

Salary (30,000) (100,000) NIASB
Net Income after 20,000 Bonus
Salary but before
Bonus 120,000
÷ 1.20
Net Income after
Salary and bonus 100,000
15.

Silent – ratio upon formation of partnership

JJ (2/3) KK(1/3)
P60,000 30,000 = 90,000

Net Income = 90,000 x 2/3 = P60,000