Nali contributed P24,000 and To contributed P48,000 to form a partnership and they agreed to share profits in the ratio of their original capital contributions. During the first year of operations, they made a profit of P16,290; Nali withdrew P5,050 and Toh P8,000. At the start of the following year, they agreed to admit Me into the partnership. Me was to receive a one fourth interest in the capital and profits upon payment of P30,000 to Nali and Tohh, whose capital accounts were to be reduced by transfers of Me’s capital account of amounts sufficient to bring them back to their original capital ratio. How much of the P30,000 paid by Me be given to Nali
Nali contributed P24,000 and To contributed P48,000 to form a partnership and they agreed to share profits in the ratio of their original capital contributions. During the first year of operations, they made a profit of P16,290; Nali withdrew P5,050 and Toh P8,000. At the start of the following year, they agreed to admit Me into the partnership. Me was to receive a one fourth interest in the capital and profits upon payment of P30,000 to Nali and Tohh, whose capital accounts were to be reduced by transfers of Me’s capital account of amounts sufficient to bring them back to their original capital ratio. How much of the P30,000 paid by Me be given to Nali
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 15P
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Question
Nali contributed P24,000 and To contributed P48,000 to form a
profits in the ratio of their original capital contributions. During the first year of operations, they made a
profit of P16,290; Nali withdrew P5,050 and Toh P8,000. At the start of the following year, they agreed
to admit Me into the partnership. Me was to receive a one fourth interest in the capital and profits upon
payment of P30,000 to Nali and Tohh, whose capital accounts were to be reduced by transfers of Me’s
capital account of amounts sufficient to bring them back to their original capital ratio.
How much of the P30,000 paid by Me be given to Nali
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