3. On January 1, 2021, John and Francis formed Astig Bikers Partnership organized to train prospective professional basketball players on how to shoot 3-pointer with splash. The articles of co-partnership provide that profit or loss shall be distributed accordingly: • 10% interest on average capital balance. • P50,000 and P100,000 quarterly salary for John and Francis, respectively. • The remainder shall be distributed in the ration of 3:2 for John and Francis, respectively. • The following transactions regarding the capital balance of the partners for year 2021 are provided: John, Capital Francis, Capital P 500,000 100,000 January 1, 2021 investment March 31, 2021 investment July 1, 2021 withdrawal September 30, 2021 withdrawal October 1, 2021 investment P1,000,000 (200,000) (200,000) 700,000 The chief accountant of the partnership reported net income of P1,000,000 for year 2021. What is the amount of net income allocated to John?
3. On January 1, 2021, John and Francis formed Astig Bikers Partnership organized to train prospective professional basketball players on how to shoot 3-pointer with splash. The articles of co-partnership provide that profit or loss shall be distributed accordingly: • 10% interest on average capital balance. • P50,000 and P100,000 quarterly salary for John and Francis, respectively. • The remainder shall be distributed in the ration of 3:2 for John and Francis, respectively. • The following transactions regarding the capital balance of the partners for year 2021 are provided: John, Capital Francis, Capital P 500,000 100,000 January 1, 2021 investment March 31, 2021 investment July 1, 2021 withdrawal September 30, 2021 withdrawal October 1, 2021 investment P1,000,000 (200,000) (200,000) 700,000 The chief accountant of the partnership reported net income of P1,000,000 for year 2021. What is the amount of net income allocated to John?
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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Transcribed Image Text:3. On January 1, 2021, John and Francis formed Astig Bikers Partnership organized to train
prospective professional basketball players on how to shoot 3-pointer with splash. The
articles of co-partnership provide that profit or loss shall be distributed accordingly:
• 10% interest on average capital balance.
• P50,000 and P100,000 quarterly salary for John and Francis, respectively.
• The remainder shall be distributed in the ration of 3:2 for John and Francis,
respectively.
• The following transactions regarding the capital balance of the partners for year
2021 are provided:
John, Capital
P1,000,000
Francis, Capital
P 500,000
100,000
January 1, 2021 investment
March 31, 2021 investment
July 1, 2021 withdrawal
September 30, 2021 withdrawal
October 1, 2021 investment
(200,000)
(200,000)
700,000
The chief accountant of the partnership reported net income of P1,000,000
for year 2021.
What is the amount of net income allocated to John?
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