At the beginning of 2020, a business had total liabilities of P1,800,000 and P600,000 of equity. Total assets increased by 25% while the total liabilities remained the same. Contributions made by the owner amounted to P500,000 while the profit amounted to P1,000,000. Determine the amount of withdrawals made by the owner during the year.

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter2: Analysis Of Financial Statements
Section: Chapter Questions
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At the beginning of 2020, a business had total liabilities of P1,800,000 and P600,000 of equity. Total assets increased by 25% while the total liabilities remained the same. Contributions made by the owner amounted to P500,000 while the profit amounted to P1,000,000. Determine the amount of withdrawals made by the owner during the year.

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