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Layla and Miya organized their partnership on 01/01/20. The following entries were made into their...

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Accounting

Layla and Miya organized their partnership on 01/01/20. The following entries were made into their capital accounts during 2020.

LAYLA, CAPITAL
DR CR

BB

1/1

6/1

10/1

-

-

-

-

0

35,000

10,000

5,000
EB - 50,000

MIYA, CAPITAL
DR CR

BB

3/1

9/1

11/1

12/1

10,000

5,000

25,000

10,000

8,000
EB 28,000

Required: If partnership profits for the year equaled P66,000, indicate the allocations between the partners under the following independent profit-sharing allocation conditions

1. Interest of 10% is allocated on weighted average capital balance and the remainder is divided equally.

2. A salary of P9,000 will be allocated to Chou; 10% interest on ending capital is allocated to the partners; the remainder is divided 60/40 to Alucard and Chou, respectively.

3. Salaries are allocated to Alucard and Chou in the amount of P10,000 and P15,000, respectively and the remainder is allocated in the proportion to weighted average capital balances.

4. A bonus of 10% of partnership profits after bonus is credited to Alucard, a salary of P35,000 is allocated to Chou, a P20,000 salary is allocated to Alucard, 10% interest on weighted capital is allocated, and the remainder is split equally.

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