AA, BB and CC formed a partnership on January 1, 2022. Their capital balances before share in profit or loss on December 31 were P300,000, P400,000 and P500,000, respectively. The partnership agreement provides for the following manner of distributing profits: Monthly salaries for AA, BB and CC of P4,000, P3,000 and P2,000, respectively 12% interest based on the weighted average capital • Residual profit to AA, BB and CC in the ratio of 2:4:4, respectively The partnership profit for the year 2022 amounted to P350,000. During the year, AA contributed additional capital of P60,000 on July 1 while BB contributed P40,000 on March 30. AA and BB made permanent withdrawals of capital on October 1 of P2,000 each while CC withdrew P36,000 on October 31. How much is the share of AA in the partnership net income?
AA, BB and CC formed a partnership on January 1, 2022. Their capital balances before share in profit or loss on December 31 were P300,000, P400,000 and P500,000, respectively. The partnership agreement provides for the following manner of distributing profits: Monthly salaries for AA, BB and CC of P4,000, P3,000 and P2,000, respectively 12% interest based on the weighted average capital • Residual profit to AA, BB and CC in the ratio of 2:4:4, respectively The partnership profit for the year 2022 amounted to P350,000. During the year, AA contributed additional capital of P60,000 on July 1 while BB contributed P40,000 on March 30. AA and BB made permanent withdrawals of capital on October 1 of P2,000 each while CC withdrew P36,000 on October 31. How much is the share of AA in the partnership net income?
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 4CE
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Transcribed Image Text:AA, BB and CC formed a partnership on January 1, 2022. Their capital balances
before share in profit or loss on December 31 were P300,000, P400,000 and
P500,000, respectively. The partnership agreement provides for the following
manner of distributing profits:
Monthly salaries for AA, BB and CC of P4,00O, P3,000 and P2,000, respectively
• 12% interest based on the weighted average capital
Residual profit to AA, BB and CC in the ratio of 2:4:4, respectively
The partnership profit for the year 2022 amounted to P350,000. During the year,
AA contributed additional capital of P60,000 on July 1 while BB contributed
P40,000 on March 30. AA and BB made permanent withdrawals
capital on
October 1 of P2,000 each while CC withdrew P36,000 on October 31.
How much is the share of AA in the partnership net income?
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