A.    Intellectual and Lovable share profits and losses in the ratio 7:5, respectively.

Intellectual Lovable
Ratio 7/12  5/12 
Multiply by net income 350,000.00 350,000.00
share in net income ₱ 204,166.67 ₱ 145,833.33

B. Interest of 10% is allowed on average capital balance and the remainder equally.

Intellectual Lovable
Average Capital 685,000.00 493,333.33
Interest on Capital 10% 10%
Intellectual (685,000*10%) 68,500.00
Lovable(493,333.33*10%) 49,333.33
Share in net income 116,083.33 116,083.33
Total ₱ 184,583.33 ₱ 165,416.67

C.    Intellectual and Lovable shall be given monthly salaries of P9,000 and P7,500, respectively and the balance divided in th

Intellectual Lovable

Salaries 108,000.00 90,000.00

Remiander 700/1300 600/1300
Multiply by remaining income 152,000.00 152,000.00
81,846.15 70,153.85
Total Share net income ₱ 189,846.15 ₱ 160,153.85

D.   Intellectual is allowed a bonus of 10% and the balance is divided based on average capital. (Bonus not treated as expens

Intellectual
Bonus 35,000
Remainder Rate of Average Capital 685,000.00
1,178,333.33

Multiply by:315,000 315,000.00

Share in Net Income 183,118.81
Total ₱ 218,118.81
 E. Partners share profits and losses under the following agreement:
a.   bonus of 10% of net income after bonus is given to Intellectual
b.  interest of 6% is given to beginning capital
c.  any balance divided in the ratio of 3:2 to Intellectual and Lovable, respectively.

a. bonus of 10% of net income after bonus is given to Intellectual

Bonus (B) =
B =
1.10B =
1.10B / 1.10 =
B =
b. interest of 6% is given to beginning capital
Intellectual Lovable
Beginning Capital 580,000.00 420,000.00
Multiply by: Interest rate 6% 6%
Interest ₱ 34,800.00 ₱ 25,200.00

c. any balance divided in the ratio of 3:2 to Intellectual and Lovable, respectively.

Intellectual Lovable
Bonus to Intellectual 31,818.18
Interest 34,800.00 25,200.00
Remainder (3:2) 154,909.09 103,272.73
Total Share of Net Income ₱ 221,527.27 ₱ 128,472.73

F. Partners share profits and losses under the following agreement:

a. interest of 6% is allowed on the excess of average investment of one partner over the other

Intellectual Average Capital 685,000.00

Less: Lovable Average Capital 493,333.33
Overage Capital- Intellectual 191,666.67
Multiply: Interest Rate 6%
Interest Overage Capital- Intellecutal ₱ 11,500.00

b. monthly salary of P12,000 and P9,000 is given to Intellectual and Lovable, respectively
Intellectual Lovable
MONTHLY SALARY 12,000.00 9,000.00
multiply no. of months 12.00 12
Annual Salary ₱ 144,000.00 ₱ 108,000.00
 c. bonus of 10% of net income after salaries and interests is given to Intellectual

B =
B =
Intellectual Bonus =

d. any balance divided based on ending capital.

Intellectual Lovable Total

Interest on Overage Capital 115,000.00 11,500.00
Salaries 144,400.00 108,000.00 252,000.00
Bonus 19,450.00 19,450.00

Capital End Ratio 700/1300 600/1300

Remainder (54:46) 77,900 77,900
Share on Remaining bal. 29,912 25,638 55,550.00
Total share on net income ₱ 204,861.54 ₱ 145,138.46 350,000.00
350,000.00

G. Partnership agreement on their share in profits and losses contains the following:

a. Partnership agreement on their share in profits and losses contains the following
Intellectual Ending
Capital
Ending Capital 700,000.00
Multiply by: 10%
Total ₱ 70,000.00

b. bonus of 10% of net income after bonus and interests is given to Intellectual.
B= 0,000 - 130,000 - B)
B= (10%) (220,000 -B)
B= 220,000 - 0.10B
1.1B= 22000/1.1
B= ₱ 20,000.00

c. monthly salary of P12,500 and P10,000 is given to Intellectual and Lovable, respectively
Intellectual Lovable
Monthly Salary 12,500.00 10,000.00
Months 12 12
Total Salaries ₱ 150,000.00 ₱ 120,000.00
d. any balance divided equally.
Intellectual Lovable
Interest in Ending Capital 10% ₱ 70,000.00 ₱ 60,000.00
Annual Salaries ₱ 150,000.00 ₱ 120,000.00
Bonus in Intellectual 0
Remainder (50:50) -₱ 50,000.00 -₱ 50,000.00
Ratio: Equal 50.0% 50%
Share on Net Loss -₱ 25,000.00 -₱ 25,000.00
Total ₱ 195,000.00 ₱ 155,000.00
 B.    Interest of 10% is allowed on average capital balance and the

Date Balance
₱ 350,000.00 1-Jan 580,000
30-Mar 640,000
10-May 780,000
25-Jul 700,000

Total

68,500.00
49,333.33 Date Balance
232,166.66 1-Jan 420,000
₱ 350,000.00 18-May 540,000
24-Aug
29-Oct
respectively and the balance divided in the ratio of ending capital.

Total
Intellectual
198,000.00 Date
1-Jan
152,000.00 30-Mar
10-May
₱ 350,000.00 25-Jul
Ending Capital

age capital. (Bonus not treated as expense.)

Lovable Total
35,000
493,333.33
1,178,333.33

315,000.00
131,881.19 315,000
₱ 131,881.19 ₱ 350,000.00
llowing agreement:
is given to Intellectual

Intellectual and Lovable, respectively.

10% x (350,000.00- B)
35000-0.10B
35,000.00
35,000.00/1.10
₱ 31,818.18

Total
31,818.18
60,000.00
258,181.82
₱ 350,000.00

partner over the other

able, respectively
 10% x (350,000 -144,000- 11,500)
10% x 194,500
₱ 19,450.00

he following
Lovable Ending
Capital
600,000.00
10%
₱ 60,000.00

vable, respectively

₱ 270,000.00
Totals
₱ 130,000.00
₱ 270,000.00
0

350,000
₱ 350,000.00
verage capital balance and the remainder equally.

Intellectual Average Capital

Months Unchanged Peso months Average Capital

3 1,740,000
1 640,000
3 2,340,000
5 3,500,000
12 ₱ 8,220,000.00
12 ₱ 685,000.00

Lovable Average Capital

Months Unchanged Peso months Average Capital

5 2,100,000
3 1,620,000
500,000 2 1,000,000
600,000 2 1,200,000
12 5,920,000
12 ₱ 493,333.33

Lovable
Balance Date Balance
580,000 1-Jan 420,000
60,000 18-May 120,000
140,000 24-Aug -40,000
-80,000 29-Oct 100,000
₱ 700,000.00 ₱ 600,000.00

Bonus Computation
Net Income 350,000
Multiply Bonus Rate 10%
Bonus ₱ 35,000.00
 B.    Interest of 10% is allowed on average capital balance and the remainder equally.

Intellectual Average Capital

Date Balance Months Unchanged Peso months

1-Jan 580,000 3 1,740,000
30-Mar 640,000 1 640,000
10-May 780,000 3 2,340,000
25-Jul 700,000 5 3,500,000
12 8,220,000
12

Lovable Average Capital

Date Balance Months Unchanged Peso months

1-Jan 420,000 5 2,100,000
18-May 540,000 3 1,620,000
24-Aug 500,000 2 1,000,000
29-Oct 600,000 2 1,200,000
12 5,920,000
12
e remainder equally.

Average Capital

685,000.00

Peso months Average Capital

493,333.33