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For the year, partnership net income was P420,000. Compute the ending capital for each partner:

For the year, partnership net income was P420,000. Compute the ending capital for each partner:

College Accounting, Chapters 1-27
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 3SEB
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22. One, Two, and Three formed a partnership on January 1, 2020. Each d. P665,000 and P553,000 contributed P420,000. Salaries were to be allocated as follows: One 105,000 Two 105,000 Three 157,500 Drawings were equal to salaries and be taken out evenly throughout the year. With sufficient partnership net income, One and Two could split a bonuS equal to 25 percent of partnership net income after salaries and bonus (in no event could the bonus go below zero). Remaining profits were to be split as follows: 30% for One; 30% for Two, and 40% for Three. For the year, partnership net income was P420,000. Compute the ending capital for each partner: a. One, P542,850; Two, P542,850; Three, P594,300 b. One, P441,000; Two, P441,000; Three, P435,750 c. One, P437,850; Two, P437,850; Three, P436,800 d. One, P439,250; Two, P439,250; Three, P434,000 136
Transcribed Image Text:22. One, Two, and Three formed a partnership on January 1, 2020. Each d. P665,000 and P553,000 contributed P420,000. Salaries were to be allocated as follows: One 105,000 Two 105,000 Three 157,500 Drawings were equal to salaries and be taken out evenly throughout the year. With sufficient partnership net income, One and Two could split a bonuS equal to 25 percent of partnership net income after salaries and bonus (in no event could the bonus go below zero). Remaining profits were to be split as follows: 30% for One; 30% for Two, and 40% for Three. For the year, partnership net income was P420,000. Compute the ending capital for each partner: a. One, P542,850; Two, P542,850; Three, P594,300 b. One, P441,000; Two, P441,000; Three, P435,750 c. One, P437,850; Two, P437,850; Three, P436,800 d. One, P439,250; Two, P439,250; Three, P434,000 136
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