What is the capital balance of Bong on December 31, 2020?
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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Question
On January 1, 2020, Mike, Jay and Bong organized MJB partnership by investing P5M, 2M and P3M for capital interest ratio of 4:5:1 respectively. Bong has been appointed as managing partner. During year 2020, MJB partnership reported net income of P3,000,000. Their
- 20% interest on beginning capital
- P10,000, P20,000 and P50,000 monthly salary, respectively
- 25% bonus of net income after interest and salary to managing partner
- The remainder will be divided equally among the partners.
- The partners must withdraw at the end of the year 50% of their share in net income for the period.
What is the capital balance of Bong on December 31, 2020?
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