Item No. 25 is based on the following information: Ree, Ver, and Kwai are partners having capital balances of P 180,000, P 120,000, and P 200,000, respectively on January 1, 200B. Their profit and loss sharing agreement provides for the following: o Salary allowance of P 60,000 each; Bonus of 20% of the profit after salaries and bonus; and Remainder is to be divided 6:2:2. The bonus is to be split between Ver and Kwai. During 200B, the partnership earned profit of P 276,000. 25. Assuming all the partners withdrew their salary allowances during the year how much would be the capital balance of Ver on December 31, 200B? a. P 84,000. c. P 144,000. b. P 120,000. d. P 204,000.
Item No. 25 is based on the following information: Ree, Ver, and Kwai are partners having capital balances of P 180,000, P 120,000, and P 200,000, respectively on January 1, 200B. Their profit and loss sharing agreement provides for the following: o Salary allowance of P 60,000 each; Bonus of 20% of the profit after salaries and bonus; and Remainder is to be divided 6:2:2. The bonus is to be split between Ver and Kwai. During 200B, the partnership earned profit of P 276,000. 25. Assuming all the partners withdrew their salary allowances during the year how much would be the capital balance of Ver on December 31, 200B? a. P 84,000. c. P 144,000. b. P 120,000. d. P 204,000.
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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Transcribed Image Text:Item No. 25 is based on the following information:
Ree, Ver, and Kwai are partners having capital balances of P 180,000,
P 120,000, and P 200,000, respectively on January 1, 200B. Their profit and loss
sharing agreement provides for the following:
o Salary allowance of P 60,000 each;
Bonus of 20% of the profit after salaries and bonus; and
o Remainder is to be divided 6:2:2.
The bonus is to be split between Ver and Kwai. During 200B, the
partnership earned profit of P 276,000.
25. Assuming all the partners withdrew their salary allowances during the year,
how much would be the capital balance of Ver on December 31, 200B?
a. P 84,000.
c. P 144,000.
b. P 120,000.
d. P 204,000.
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