20. The partnership agreement of Socorro and Torres provides that interest at 10% is to be credited to each partner on the basis of average capital 10% is to be credited to each partner on the basis of average capital balances. A summary of Torres Capital account for the year ended December 31, 2020 is as follows: Balance January 1 Additional Investment, July 1 Withdrawal, August 1 P 304,500 87,000 32,625 What amount of interest should be credited to Torres Capital account? a. P33,168.75
20. The partnership agreement of Socorro and Torres provides that interest at 10% is to be credited to each partner on the basis of average capital 10% is to be credited to each partner on the basis of average capital balances. A summary of Torres Capital account for the year ended December 31, 2020 is as follows: Balance January 1 Additional Investment, July 1 Withdrawal, August 1 P 304,500 87,000 32,625 What amount of interest should be credited to Torres Capital account? a. P33,168.75
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 57P
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Transcribed Image Text:20. The partnership agreement of Socorro and Torres provides that interest at
10% is to be credited to each partner on the basis of average capital
balances. A summary of Torres Capital account for the year ended
December 31, 2020 is as follows:
Balance January 1
Additional Investment, July 1
Withdrawal, August 1
P 304,500
87,000
32,625
What amount of interest should be credited to Torres Capital account?
a. P33,168.75
b. P33,440.625
C. P35,887.50
d. P37,518.75
21. Simple and Elegant share profits and losses equally, Simple and Elegant
receive salary allowances of P105,000 and P157,500, respectively, and both
partners receive 10% interest on their average capital balances. Average
capital balances are calculated at the beginning of each month regardless
of when the capital contributions and capital withdrawals were made and
partners' drawings are not used in determining the average capital
balances. Total net income for 2020 is P630,000.
Simple
P525,000
Elegant
P630,000
January 1 capital balances
Yearly drawings (P7,875 a month)
Permanent withdrawals of capital:
94,500
94,500
(63,000)
June 3
(78,750)
May 2
Additional investments of capital:
July 3
October 2
210,000
e
262,500
0.
What is the weighted average capital for Simple and Elegant respectively
for 2020?
a. P581,000 and P627,812.50
b. P553,000 and P665,000
C. P525,000 and P630,000
d. P665,000 and P553,000
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