3. Cabello and Dacanay are partners in a trading company. During 2020, they withdrew their salary allowances of P250,000 and P375,000, respectively. Profits and losses are shared in the ratio of 3:2. The income summary account before any profit allocation has a credit balance of P750,000. The partners' capital account show the following: Dacanay P750,000 P500,000 250,000 Cabello Beginning balances Additional investments 125,000 Withdrawals other than salary allowances (250,000) (125,000) What are the capital balances of the partners for the year 2020 after closing income summary and withdrawals accounts? Cabello a. P700,000 b. P450,000 Dacanay P675,000 P300,000 P425,000 c. P575,000 d. P950,000 P1,050,000
3. Cabello and Dacanay are partners in a trading company. During 2020, they withdrew their salary allowances of P250,000 and P375,000, respectively. Profits and losses are shared in the ratio of 3:2. The income summary account before any profit allocation has a credit balance of P750,000. The partners' capital account show the following: Dacanay P750,000 P500,000 250,000 Cabello Beginning balances Additional investments 125,000 Withdrawals other than salary allowances (250,000) (125,000) What are the capital balances of the partners for the year 2020 after closing income summary and withdrawals accounts? Cabello a. P700,000 b. P450,000 Dacanay P675,000 P300,000 P425,000 c. P575,000 d. P950,000 P1,050,000
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 3PA
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Transcribed Image Text:3. Cabello and Dacanay are partners in a trading company. During 2020, they
withdrew their salary allowances of P250,000 and P375,000, respectively.
Profits and losses are shared in the ratio of 3:2. The income summary
account before any profit allocation has a credit balance of P750,000. The
partners' capital account show the following:
Cabello
Dacanay
P750,000 P500,000
Beginning balances
Additional investments
250,000
Withdrawals other than salary allowances (250,000) (125,000)
125,000
What are the capital balances of the partners for the year 2020 after closing
income summary and withdrawals accounts?
Cabello
a. P700,000
b. P450,000
Dacanay
P675,000
P300,000
P425,000
c. P575,000
d. P950,000 P1,050,000
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