XYZ partnership formed its partnership on June 1, 20x1 with the following capital balances: A, capital 60,000 B, capital 80,000 C, capital 100,000 The partners agreed that profits and losses be distributed as follows: Each partner is allocated an interest of 10% based on beginning capital Salary allowance to B of P20,000 per year. Any remaining profits and losses are allocated on a 3:3:4 ratio, respectively Each partner withdraw P5,000 Assuming the net income is P50,000. What is the capital balance of C at the end of the year?
XYZ partnership formed its partnership on June 1, 20x1 with the following capital balances: A, capital 60,000 B, capital 80,000 C, capital 100,000 The partners agreed that profits and losses be distributed as follows: Each partner is allocated an interest of 10% based on beginning capital Salary allowance to B of P20,000 per year. Any remaining profits and losses are allocated on a 3:3:4 ratio, respectively Each partner withdraw P5,000 Assuming the net income is P50,000. What is the capital balance of C at the end of the year?
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
Related questions
Question
- XYZ
partnership formed its partnership on June 1, 20x1 with the following capital balances:
|
A, capital |
60,000 |
|
B, capital |
80,000 |
|
C, capital |
100,000 |
The partners agreed that
- Each partner is allocated an interest of 10% based on beginning capital
- Salary allowance to B of P20,000 per year.
- Any remaining profits and losses are allocated on a 3:3:4 ratio, respectively
- Each partner withdraw P5,000
Assuming the net income is P50,000. What is the capital balance of C at the end of the year?
The Answer is (110567). I just need the computation
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 2 steps
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,