James, Gian, and Jane formed a partnership on January 1, 2015, with investments of P100,000, P150,000, and P200,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of P10,000 to Gian, and (3) sharing the remainder of the income or loss in a ratio of 20% for James, and 40% each for Gian and Jane. Net income was P150,000 in 2015 and P180,000 in 2016. Each partner withdrew P1,000 for personal use every month during 2015 and 2016. What was James' share of income for 2015? A. 63,000 B. 53,000 C. 58,000 D. 29,000
James, Gian, and Jane formed a partnership on January 1, 2015, with investments of P100,000, P150,000, and P200,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of P10,000 to Gian, and (3) sharing the remainder of the income or loss in a ratio of 20% for James, and 40% each for Gian and Jane. Net income was P150,000 in 2015 and P180,000 in 2016. Each partner withdrew P1,000 for personal use every month during 2015 and 2016. What was James' share of income for 2015? A. 63,000 B. 53,000 C. 58,000 D. 29,000
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
Related questions
Question
James, Gian, and Jane formed a partnership on January 1, 2015, with investments of P100,000, P150,000, and P200,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of P10,000 to Gian, and (3) sharing the remainder of the income or loss in a ratio of 20% for James, and 40% each for Gian and Jane. Net income was P150,000 in 2015 and P180,000 in 2016. Each partner withdrew P1,000 for personal use every month during 2015 and 2016. What was James' share of income for 2015?
A. 63,000
B. 53,000
C. 58,000
D. 29,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you