1. Robertson and Lloyd are partners. Their capital accounts during 2020 were as follows: Debit Credit Lloyd Capital: 40,000 January I Robertson Capital: January 1 April 3 August 28 October 31 8,000 March 5 July 6 6,000 3,000 Debit 9,000 a. Each partner is to be credited 10 percent interest on his average capital. b. Any remaining income or loss is to be divided based on the beginning capital ratio. Credit 60,000 The net income of the Partnership is P40,000 for the year. The partnership agreement provides for the division of income as follows: 7,000 D. P24,050 Determine the share of Lloyd on the net income of 2020, (Assume that changes in the capital accounts made at the first half of the month are considered changes at the beginning of the month and changes at the last half of the month are considered changes at the beginning of the following month). A. P19,000 B. P21,000 C. P15,950
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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