A and B are partners with the following contributions: Partner A, P300,000 and Partner B, P200,000. They share in the profit and loss of 40% and 60% respectively. Partner B's capital account had a net decrease of P120,000 during the year 2021. During 2021, B withdrew P350,000 (charged against his capital account) and with additional investment in the form of equipment with a book value of P 90,000 and a fair value of P80,000. Determine the profit/loss of the AB Partnership for the year 2021.
A and B are partners with the following contributions: Partner A, P300,000 and Partner B, P200,000. They share in the profit and loss of 40% and 60% respectively. Partner B's capital account had a net decrease of P120,000 during the year 2021. During 2021, B withdrew P350,000 (charged against his capital account) and with additional investment in the form of equipment with a book value of P 90,000 and a fair value of P80,000. Determine the profit/loss of the AB Partnership for the year 2021.
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 12DQ
Related questions
Question
A and B are partners with the following contributions: Partner A, P300,000 and Partner B, P200,000. They share in the
Partner B's capital account had a net decrease of P120,000 during the year 2021.
During 2021, B withdrew P350,000 (charged against his capital account) and with additional investment in the form of equipment with a book value of P 90,000 and a fair value of P80,000. Determine the profit/loss of the AB
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you