Answered: On January 1, 2018, Cee and Dee have…

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 4CE

See similar textbooks

Related questions

Question

100%

On January 1, 2018, Cee and Dee have capital balances of P20,000 and P16,000 respectively. On July 1, 2018 Cee invests an additional P4,000 and Dee withdraws P1,600. Profits and losses are divided as follows: Dee is the managing partner and as such shall receive P16,000 salary and Cee shall receive P7,200; both partners shall receive interest of 10% on their beginning capital balances to offset whatever difference in capital investments they have and any remainder shall be divided equally.

Income of the Cee-Dee partnership for the year 2018 is P9,600. Cee’s share in the net income is:

a.P880

b.P9,200

c.P4,800

d. P600

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,