(c) Coburn (beginning capital, Tk. 60,000) and Webb (beginning capital Tk. 90,000) are partners. During 2017, the partnership eamed net income of Tk. 80,000, and Coburn made drawings of Tk. 18,000 while Webb made drawings of Tk. 24,000. Instructions (i) Assume the partnership income-sharing agreement calls for income to be divided 45% to Coburn and 55% to Webb. Prepare the journal entry to record the allocation of net ineome. (ii) Assume the partnership income-sharing agreement calls for income to be divided with a salary of Tk. 30,000 to Cobum and Tk. 25,000 to Webb, with the remainder divided 45% to Coburn and 55% to Webb. Prepare the journal entry to record the allocation of net income. (iii) Assume the partnership income-sharing agreement calls for income to be divided with a salary of Tk. 40,000 to Cobum and Tk. 35,000 to Webb, interest of 10% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to record the allocation of net income. (iv) Compute the partners' ending capital balances under the assumption in part (c).

(c) Coburn (beginning capital, Tk. 60,000) and Webb (beginning capital Tk. 90,000) are partners. During 2017, the partnership eamed net income of Tk. 80,000, and Coburn made drawings of Tk. 18,000 while Webb made drawings of Tk. 24,000. Instructions (i) Assume the partnership income-sharing agreement calls for income to be divided 45% to Coburn and 55% to Webb. Prepare the journal entry to record the allocation of net ineome. (ii) Assume the partnership income-sharing agreement calls for income to be divided with a salary of Tk. 30,000 to Cobum and Tk. 25,000 to Webb, with the remainder divided 45% to Coburn and 55% to Webb. Prepare the journal entry to record the allocation of net income. (iii) Assume the partnership income-sharing agreement calls for income to be divided with a salary of Tk. 40,000 to Cobum and Tk. 35,000 to Webb, interest of 10% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to record the allocation of net income. (iv) Compute the partners' ending capital balances under the assumption in part (c).

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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