8. A and B's partnership began operations on April 1, 20x1. On this date, A invested P200,000 cash, while B invested a non- cash asset with a carrying amount of P600,000 and à fair value of P400,000. The partnership agreement stipulates the following: Monthly salary of P8,000 to A, recognized as expense. The monthly salaries are to be paid at each month-end. Bonus to A equal to 10% of profit before salaries and interest but after bonus. 10% annual interest on the weighted average balance of B's capital. • Balance is shared equally B contributed additional P44,000 on July 1, 20x1 and made drawings of P24,000 on Dec. 1, 20x1. The partnership reported profit of P588,000 before deductions for bonus and interest
8. A and B's partnership began operations on April 1, 20x1. On this date, A invested P200,000 cash, while B invested a non- cash asset with a carrying amount of P600,000 and à fair value of P400,000. The partnership agreement stipulates the following: Monthly salary of P8,000 to A, recognized as expense. The monthly salaries are to be paid at each month-end. Bonus to A equal to 10% of profit before salaries and interest but after bonus. 10% annual interest on the weighted average balance of B's capital. • Balance is shared equally B contributed additional P44,000 on July 1, 20x1 and made drawings of P24,000 on Dec. 1, 20x1. The partnership reported profit of P588,000 before deductions for bonus and interest
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 3SEB
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A's share in
B's share in partnership's profit
Ending Capital Balance of A
Ending Capital Balance of B
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