14. The net income agreement for Molina and Serraon states net income and net loss shall be divided in a ratio of 4:6, respectively. The net loss for the current year is P50,000. On January 1 of the current year, the capital balances were as follows: Molina, P55,000; and Serraon, P65,000. During the current year Molina withdrew P40,000 and Serraon withdrew P25,000. Compute the capital balances as of December 31 of the current year. Molina, capital a. debit of P5,000 b. credit of P35,000 & credit of P70,000 credit of P5,000 Serraon, capital credit of P10,000 credit of P10,000 С. d. none of the above
14. The net income agreement for Molina and Serraon states net income and net loss shall be divided in a ratio of 4:6, respectively. The net loss for the current year is P50,000. On January 1 of the current year, the capital balances were as follows: Molina, P55,000; and Serraon, P65,000. During the current year Molina withdrew P40,000 and Serraon withdrew P25,000. Compute the capital balances as of December 31 of the current year. Molina, capital a. debit of P5,000 b. credit of P35,000 & credit of P70,000 credit of P5,000 Serraon, capital credit of P10,000 credit of P10,000 С. d. none of the above
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions
Section: Chapter Questions
Problem 28P
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Question
Transcribed Image Text:14. The net income agreement for Molina and Serraon states net income and
net loss shall be divided in a ratio of 4:6, respectively. The net loss for the
current year is P50,000. On January 1 of the current year, the capital
balances were as follows: Molina, P55,000; and Serraon, P65,000. During
the current year Molina withdrew P40,000 and Serraon withdrew P25,000.
Compute the capital balances as of December 31 of the current year.
Molina, capital
debit of P5,000
Serraon, capital
credit of P10,000
a.
b. credit of P35,000 credit of P70,000
credit of P5,000
С.
credit of P10,000
d.
none of the above
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