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MOUNTAIN VIEW COLLEGE
SCHOOL OF BUSINESS AND ACCOUNTANCY
ACCOUNTING FOR SPECIAL TRANSACTIONS
WORKSHEET#2: PARTNERSHIP OPERATION
INSTRUCTIONS: Answers and all necessary solutions to the requirements must be written in a clean
sheet of paper (all in good form). Submission format must be image file (png or
jpeg).
PROBLEM #1
The net income of A and B Partnership for 2021 amounted to P504,000. A, is the managing partner. Assume that
the partners agreed on the allocation of net income as follows:
• Bonus of 20% to A;
• Salaries to A, P48,000 and B, P72,000;
• Interest on average capital balances A, P14,400 and B, P9,600.
• Residual balance in net income be allocated to A and B in the ratio of 2:1 ratio.
Required: Prepare a schedule to allocate net income, assuming:
1. Bonus is based on net income after bonus but before salaries and interest.
