AB Partnership was formed on February 28, 20x1. Partner A invested P150,000 cash while Partner B invested land that he originally bought for P70,000 but has a current fair value of P180,000. Because of cash shortage, B invested additional cash of P60,000 on November 1, 20x1. The partnership contract states the following: A Monthly salary (recognized as 10,000 20,000 expenses and withdrawn periodically) Interest on beginning capital Bonus on profit before salaries and interest but after bonus Remaining profit or loss 12% p.a. 12% p.a. 20% 50% 50% 15. AB Partnership earned profit of P120,000 in 20x1 before deducting the bonus and interests. What is the capital balance of A on December 31, 20x1?
AB Partnership was formed on February 28, 20x1. Partner A invested P150,000 cash while Partner B invested land that he originally bought for P70,000 but has a current fair value of P180,000. Because of cash shortage, B invested additional cash of P60,000 on November 1, 20x1. The partnership contract states the following: A Monthly salary (recognized as 10,000 20,000 expenses and withdrawn periodically) Interest on beginning capital Bonus on profit before salaries and interest but after bonus Remaining profit or loss 12% p.a. 12% p.a. 20% 50% 50% 15. AB Partnership earned profit of P120,000 in 20x1 before deducting the bonus and interests. What is the capital balance of A on December 31, 20x1?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 14P
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Transcribed Image Text:AB Partnership was formed on February 28, 20x1. Partner A invested P150,000 cash while Partner B invested
land that he originally bought for P70,000 but has a current fair value of P180,000. Because of cash
shortage, B invested additional cash of P60,000 on November 1, 20x1. The partnership contract states the
following:
A
Monthly salary (recognized as
10,000
20,000
expenses and withdrawn
periodically)
Interest on beginning capital
Bonus on profit before salaries
and interest but after bonus
Remaining profit or loss
12% p.a.
12% p.a.
20%
50%
50%
15. AB Partnership earned profit of P120,000 in 20x1 before deducting the bonus and interests. What is the
capital balance of A on December 31, 20x1?
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