he partners Ma
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 43P
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Question
Transcribed Image Text:The partners Macopa, Sineguelas and Ashitaba have capital balances of P300,000,
P450,000 and P200,000 respectively, while profit and loss was divided in the ratio 4:4:2.
On December 1, 2017, Macopa announced his intention to leave the partnership
at the end of the year. During the year the partnership gained a Net Income of P250,000
which was distributed as follows: 5% interest on their individual capital, salaries of P6,000
to Partners Sineguelas and Ashitaba, 4% Bonus on Net income after salaries and interest
on capital was allowed to partner Macopa.
Instruction:
1) Compute for the distribution of Net Income at the end of the year.
2) Give the entry to record the withdrawal of Macopaat the end of the year assuming
a) Macopa cash settlement was P20,000 less than her capital interest and the bonus
method was used.
b) Macopa's cash settlement was P10,000 more than her capital interest and the
asset revaluation method was used
c) Macopa's cash settlement was equal to her capital interest.
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