On January 1, 2020, Lim and Pan decided to form a partnership. At the end of the year, the partnership made a net income of P630,000. The capital accounts of the partnership show the following transactions. Lim, Capital Pan, Capital Debit Credit Debit Credit January 1 April 1 210,000 131,250 26,250 June 1 52,500 52,500 August 1 September 1 October 1 15,750 5,250 26,250 December 1 21,000 26,250
On January 1, 2020, Lim and Pan decided to form a partnership. At the end of the year, the partnership made a net income of P630,000. The capital accounts of the partnership show the following transactions. Lim, Capital Pan, Capital Debit Credit Debit Credit January 1 April 1 210,000 131,250 26,250 June 1 52,500 52,500 August 1 September 1 October 1 15,750 5,250 26,250 December 1 21,000 26,250
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 57P
Related questions
Question
Transcribed Image Text:Assuming that an interest of 20% per annum is given on average capital and
10. On January 1, 2020, Lim and Pan decided to form a partnership. At the end
of the year, the partnership made a net income of P630,000. The capital
accounts of the partnership show the following transactions.
Lim, Capital
Pan, Capital
Debit
Credit
Debit
Credit
January 1
April 1
210,000
131,250
26,250
June 1
52,500
August 1
September 1
52,500
15,750
26,250
21,000
October 1
5,250
December 1
26,250
the balance of the profits is allocated equally, the allocation of profits
should be:
a. Lim, P315,000; Pan, P311,850
b. Lim, P321,300; Pan, P308,700
c. Lim, P352,800; Pan, P277,200
d. Lim, P361,200; Pan, P268,800
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
Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT