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On January 1, 20x7 Jorgia, Lizza, Miles, Nice formed a partnership. At the time of formation, the partners agreed to the following amount of investment, division of profits and losses, and drawings: Jorgia Lizza Miles Nice Initial Investment P36,000 P56,000 P60,000 P40.000 Profit and Loss Ratio 15% 30% 35% 20% Annual Withdrawals 20x7 P14,400 P14,400 P14.400 P14.400 20x8 19.200 19.200 19.200 19.200 20x9 14,600 14.600 30.000 30.000

On January 1, 20x7 Jorgia, Lizza, Miles, Nice formed a partnership. At the time of formation, the partners agreed to the following amount of investment, division of profits and losses, and drawings: Jorgia Lizza Miles Nice Initial Investment P36,000 P56,000 P60,000 P40.000 Profit and Loss Ratio 15% 30% 35% 20% Annual Withdrawals 20x7 P14,400 P14,400 P14.400 P14.400 20x8 19.200 19.200 19.200 19.200 20x9 14,600 14.600 30.000 30.000

SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 14P
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On January 1. 20x7 Jorgia, Lizza. Miles, Nice formed a partnership. At the time of formation, the partners agreed to the following amount of investment, division of profits and losses, and drawings: Jorgia Lizza Miles Nice Initial Investment P36,000 P56,000 P60,000 P40.000 Profit and Loss Ratio 15% 30% 35% 20% Annual Withdrawals 20x7 P14,400 P14.400 P14,400 P14,400 20x8 19.200 19.200 19.200 19 200 20x9 14,600 14,600 30.000 30.000 The net income for 20x7, 20x8 and 20x9 armounts to P130,000, P156,000, P172.000 respectively. AL the end of 20x9. Miles was consented to withdraw from the partrership. 1. Compute for the capilal of Rice if Miles sold her interest to Rice with the consent of other partners at 10% more than her capilal balance. 2. Compute for the bonus to Nice if Miles sold her interest to the partnership at 10% less than her capital interest.
Transcribed Image Text:On January 1. 20x7 Jorgia, Lizza. Miles, Nice formed a partnership. At the time of formation, the partners agreed to the following amount of investment, division of profits and losses, and drawings: Jorgia Lizza Miles Nice Initial Investment P36,000 P56,000 P60,000 P40.000 Profit and Loss Ratio 15% 30% 35% 20% Annual Withdrawals 20x7 P14,400 P14.400 P14,400 P14,400 20x8 19.200 19.200 19.200 19 200 20x9 14,600 14,600 30.000 30.000 The net income for 20x7, 20x8 and 20x9 armounts to P130,000, P156,000, P172.000 respectively. AL the end of 20x9. Miles was consented to withdraw from the partrership. 1. Compute for the capilal of Rice if Miles sold her interest to Rice with the consent of other partners at 10% more than her capilal balance. 2. Compute for the bonus to Nice if Miles sold her interest to the partnership at 10% less than her capital interest.
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