Part Il: Problems 1. On January 1, 2021, Kaye, Erika and April formed a partnership with original capital contribution ratio or 4:5:1 for total agreed capitalization of P5,000,000. The profit or loss ratio agreement provides that profits shall be distributed in the ratio of 3:2:5 while losses shall be distributed in the ratio of 6:1:3. During 2021, the partnership reported net income of P2,000,000 with Kaye and Erika withdrawing P500,000 and P300,000, respectively. During 2022, the partnership reported net loss of P1,000,000 with Erika and April withdrawing P200,000 and P400,000 respectively. What is the adjusted capital balances of each partner on December 31, 2022?
Part Il: Problems 1. On January 1, 2021, Kaye, Erika and April formed a partnership with original capital contribution ratio or 4:5:1 for total agreed capitalization of P5,000,000. The profit or loss ratio agreement provides that profits shall be distributed in the ratio of 3:2:5 while losses shall be distributed in the ratio of 6:1:3. During 2021, the partnership reported net income of P2,000,000 with Kaye and Erika withdrawing P500,000 and P300,000, respectively. During 2022, the partnership reported net loss of P1,000,000 with Erika and April withdrawing P200,000 and P400,000 respectively. What is the adjusted capital balances of each partner on December 31, 2022?
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 3SEB
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Transcribed Image Text:Part II: Problems
1. On January 1, 2021, Kaye, Erika and April formed a partnership with original capital
contribution ratio or 4:5:1 for total agreed capitalization of P5,000,000. The profit or
loss ratio agreement provides that profits shall be distributed in the ratio of 3:2:5 while
losses shall be distributed in the ratio of 6:1:3.
During 2021, the partnership reported net income of P2,000,000 with Kaye and Erika
withdrawing P500,000 and P300,000, respectively. During 2022, the partnership
reported net loss of P1,000,000 with Erika and April withdrawing P200,000 and
P400,000 respectively.
What is the adjusted capital balances of each partner on December 31, 2022?
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