Partnership Operations – Bonus Quiz
The partnership agreement stipulates
1) A and B formed a partnership. The partnership agreement stipulates
the following:
 Annual salary allowances of P50,000 for A and P30,000 for B.
Salary allowances are to be withdrawn by the partners throughout
the period and are to be debited to their respective drawings
accounts.
 The partners share profits equally and losses on a 60:40 ratio.
During the period the partnership earned profit of P100,000 before salary
allowances. Compute for the respective shares of the partners in the
profit.
2) A and B formed a partnership. The partnership agreement stipulates
the following:
 Annual salary allowances of P80,000 for A and P40,000 for B.
 The partners share profits equally and losses on a 60:40 ratio.
During the period there partnership earned profit of P100,000. Compute
for the respective shares of the partners in the profit.
3) A and B formed a partnership on January 1, 2020. Their contributions
were credited to their respective capital accounts as follows:
A, 150,000 B, Capital 250,000
Capital
During the year, the partnership earned profit of P1,000,000. There was
no stipulation in the agreement on how profits are to be shared by the
partners. Compute for the respective shares of the partners in the profit.
4) A and B formed a partnership. The partnership agreement stipulates
the following:
 Annual salary allowances of P48,000 for A and P30,000 for B.
 Bonus to A of 10% of the profit after partner’s salaries and bonus.
 The partners share profits and losses on a 60:40 ratio.
During the period the partnership earned profit of P100,000 before
deductions for salaries and bonus. Compute for the respective shares of
the partners in the profit.
5) A and B formed a partnership. The partnership agreement stipulates
the following:
 Annual salary allowances of P25,000 for A and P4,000 for B.
 Bonus to A of 10% of the profit after partner’s salaries and bonus.
 The partners share profits and losses on a 60:40 ratio.
During the period the partnership incurred loss of P10,000 before
deduction for salaries. Compute for the respective shares of the partners
in the loss.
6) A and B formed a partnership. The partnership agreement stipulates
the following:
 First, A shall receive 10% of profit up to P100,000 and 20% over
P100,000.
 Second, B shall receive 5% of the remaining profit over P150,000.
 Any remainder shall be shared equally.
During the year, the partnership earned profit of P280,000. Compute for
the respective shares of the partners in the profit.
7) Mr. A, a partner in ABC Co., is deciding on whether to accept a salary
of P8,000 or a salary of P5,000 plus a bonus of 10% of profit. The bonus
shall be computed on profit after salaries and bonus. Salaries of the
other partners amount to P20,000. What amount of profit would be
necessary so that Mr. A would be indifferent between the choices?
8) A and B formed a partnership. The partnership agreement stipulates
the following:
 Annual salary allowance of P50,000 for A.
 Interest of 10% on the weighted average capital balance of B.
 The partners share profits and losses on a 60:40 ratio.
During the period, the partnership earned profit of P100,000. The
movements in B’s capital account are as follows:
B, Capital
60,000 Beginning
Jul. 31 W/D 30,000 20,000 Apr. 1 addt'l. invt.
40,000 Sep. 30 addt'l. invt.
10,000 Dec. 31 addt'l. invt.
Ending 100,00
0 and all of the other partners shall receive their minimum allocable
Compute for the respective shares of the partners in the profit.
9) A and B formed a partnership.
the following:
 Monthly salary of P5,000 for A.
 20% bonus to A, before deductions for salary, interest, and bonus.
 10% interest on the weighted average capital of B.
 Salary, bonus and interest are considered partnership expenses.
The results of operations show the following:
Revenues 150,000
Expenses (including salary, interest, and (120,000)
bonus)
Profit 30,000
The weighted average capital balance of B’s capital account is
P100,000. How much is the bonus of A?
10) A and B formed a partnership on March 1, 2020. The partnership
agreement stipulates the following:
 Annual salary allowance of P50,000 for A.
 Interest of 10% on the weighted average capital balance of B.
 The partners share profits and losses on a 60:40 ratio.
During the period, the partnership earned profit of P100,000. The
movements in B’s capital account are as follows:
B, Capital
80,000 Mar. 1 initial invt.
Jul. 31 W/D 30,000 40,000 Sep. 30 addt'l. invt.
10,000 Dec. 31 addt'l. invt.
Ending 100,00
0
Compute for the interest on B’s weighted average capital.
11) A and B formed a partnership on March 1, 2020. The partnership
agreement stipulates the following:
 A and B shall maintain average investments of P100,000 and
P150,000, respectively. Interest on the excess or deficiency in a
capital contribution is to be computed at 10% per annum.
 After interest allowances, the partners share profits and losses on a
60:40 ratio.
During the first six months of operations, the partnership incurred loss
amounting to P60,000. The average capital balances of the partners
during this period were P120,000 and P110,000, respectively. Compute
for the respective shares of the partners in the loss.
12) A and B formed a partnership and began operations on March 1,
2020. A invested P100,000 cash while B invested equipment with a book
value of P300,000 and a fair value of P180,000. On August 31, 2020, A
invested additional cash of P20,000. The partnership agreement
stipulates the following:
 Monthly salary allowances of P2,000 and P10,000 to A and B,
respectively, recognized as expenses.
 20% bonus on profit before salaries and interest but after bonus to
B.
 12% annual interest on the beginning capital of A.
 Balance equally.
The monthly salaries are withdrawn by the partners at each month-end.
The partnership earned profit of P210,000 during the period before
deductions of bonus and interest. Compute the ending balances of the
capital accounts of the partners.
13) Partner A has a 25% participation in the profits of a partnership.
During the year, A’s capital account has a net increase of P10,000.
Partner A made contributions of P40,000 and capital withdrawals of
P60,000 during the year. How much did the partnership earn during the
year?
14) The partnership agreement of partners A, B and C stipulates the
following:
 A shall receive a salary of P20,000.
 Interest of 10% shall be computed on the partners’ capital
contributions of P20,000, P50,000 and P100,000.
 Balance is divided among the partners on a 2:3:5 ratio. However,
the minimum amounts that B and C shall receive if the partnership
earns profit are P10,000 and P20,000, respectively, inclusive of
interest and share in remaining profit.
How much is the level of profit necessary so that A shall receive a total
of P25,000, inclusive of salaries, interest and share in remaining profit,
amounts?
15) The ABC Co., on which A, B and C are partners, reported profit of
P90,000 during the year.
Case #1: If partners A, B and C have a profit sharing agreement of 1/6,
2/6 and 3/6, respectively, how much are their respective shares in the
profit?
Case #2: If partners A, B and C have a profit sharing agreement of 2:3:4,
respectively, how much are their respective shares in the profit?
-JMR