On May 1, 2010, Charlie, Kelly, and Louise are partners with capital balances of P500,000, P300,000, and P400,000 respectively. They share profits and losses according to their capital balances. Louise died on this date. They have determined that the net income earned as of this date is P325,000. However, inventories in the amount of P40,000 has been considered worthless but was not considered in the determination of net income. Income earned for the year ended December 31, 2010 is P760,000. The articles of partnership declared that in the case of death of a partner, the remaining partners may continue to use the demised partner’s fund until the end of the year provided he/she will be paid 18% interest from the date of his/her date. What amount will be paid to the estate of Louise?
On May 1, 2010, Charlie, Kelly, and Louise are partners with capital balances of P500,000, P300,000, and P400,000 respectively. They share
The articles of partnership declared that in the case of death of a partner, the remaining partners may continue to use the demised partner’s fund until the end of the year provided he/she will be paid 18% interest from the date of his/her date. What amount will be paid to the estate of Louise?
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