The partnership of Maria, Clara, and Rita was formed on January 2, 2013. The original investments were as follows: Maria P80,000 Clara 120,000 Rita 180,000 According to the partnership agreement, net income or loss will be divided among the respective partners as follows: 1. Salaries of P12,000 for Maria, P10,000 for Clara, and P8,000 for Rita. 2. Interest of 8 percent on the average capital balances of Maria, Clara and Rita during the year. 3. Remainder divided equally. Additional information. 1 Net income of the partnership for the year ended December 31, 2013. was P70,000. 2 Maria invested an additional P20,000 in the partnership on July 1, 2013. 3 Rita withdrew P30,000 from the partnership October 1, 2013 4. Maria, Clara, and Rita made regular drawings against shares of net income during the year of P10,000 each.
The partnership of Maria, Clara, and Rita was formed on January 2, 2013. The original investments were as follows: Maria P80,000 Clara 120,000 Rita 180,000 According to the partnership agreement, net income or loss will be divided among the respective partners as follows: 1. Salaries of P12,000 for Maria, P10,000 for Clara, and P8,000 for Rita. 2. Interest of 8 percent on the average capital balances of Maria, Clara and Rita during the year. 3. Remainder divided equally. Additional information. 1 Net income of the partnership for the year ended December 31, 2013. was P70,000. 2 Maria invested an additional P20,000 in the partnership on July 1, 2013. 3 Rita withdrew P30,000 from the partnership October 1, 2013 4. Maria, Clara, and Rita made regular drawings against shares of net income during the year of P10,000 each.
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 2BCRQ
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Question
Required:
a. Prepare schedule showing the division of net income among the partners.
b. Prepare a Statement of Changes in Partners' Equity on December 31, 2013
Transcribed Image Text:The partnership of Maria, Clara, and Rita was formed on January 2, 2013. The original
investments were as follows:
Maria
P80,000
Clara
120,000
Rita
180,000
According to the partnership agreement, net income or loss will be divided among the
respective partners as follows:
1. Salaries of P12,000 for Maria, P10,000 for Clara, and P8,000 for Rita.
2. Interest of 8 percent on the average capital balances of Maria, Clara and Rita during the
year.
3. Remainder divided equally.
Additional information.
1 Net income of the partnership for the year ended December 31, 2013. was P70,000.
2 Maria invested an additional P20,000 in the partnership on July 1, 2013.
3 Rita withdrew P30,000 from the partnership October 1, 2013
4. Maria, Clara, and Rita made regular drawings against shares of net income during
the year of P10,000 each.
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