The partnership of Alvin, Benny and Celia provides that profits are to be divided as follows: Alvin is to receive a salary of P20,000 for managing the partnership business. Partners are to receive 10% interest on average capital balances. Remaining profits are to be divided 30%, 30% and 40% to Alvin, Benny and Celia, respectively. Alvin had a capital balance of P120,000 at January 1, 2021 and had temporary drawings of P16,000 during the year ended December 31, 2021. Benny's capital balance on January 1, 2021 was P180,000 and he invested an additional P60,000 on September 1, 2021. Celia's beginning capital balance was P220,000 and she withdrew P20,000 on July 1 but invested an additional P40,000 on October 1, 2021. Assuming that the partnership had a net income of P30,000, determine the share of: Alvin Benny Celia in net income
The partnership of Alvin, Benny and Celia provides that profits are to be divided as follows: Alvin is to receive a salary of P20,000 for managing the partnership business. Partners are to receive 10% interest on average capital balances. Remaining profits are to be divided 30%, 30% and 40% to Alvin, Benny and Celia, respectively. Alvin had a capital balance of P120,000 at January 1, 2021 and had temporary drawings of P16,000 during the year ended December 31, 2021. Benny's capital balance on January 1, 2021 was P180,000 and he invested an additional P60,000 on September 1, 2021. Celia's beginning capital balance was P220,000 and she withdrew P20,000 on July 1 but invested an additional P40,000 on October 1, 2021. Assuming that the partnership had a net income of P30,000, determine the share of: Alvin Benny Celia in net income
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
Related questions
Question
#4123
The
follows:
- Alvin is to receive a salary of P20,000 for managing the partnership business.
- Partners are to receive 10% interest on average capital balances.
- Remaining profits are to be divided 30%, 30% and 40% to Alvin, Benny and Celia, respectively.
Alvin had a capital balance of P120,000 at January 1, 2021 and had temporary drawings of P16,000 during the year ended December 31, 2021. Benny's capital balance on January 1, 2021 was P180,000 and he invested an additional P60,000 on September 1, 2021. Celia's beginning capital balance was P220,000 and she withdrew P20,000 on July 1 but invested an additional P40,000 on October 1, 2021.
Assuming that the partnership had a net income of P30,000, determine the share of:
- Alvin
- Benny
- Celia
in net income
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 3 steps
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
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT