Marasigan, cabanse and cequina formed a partnership on Jan. 1, 2019. Each contributed 120,000. Salaries were to
Question:
Marasigan, cabanse and cequina formed a partnership on Jan. 1, 2019. Each contributed ₱120,000. Salaries were to be allocated as follows: Marasigan, ₱30,000; Cabanse, ₱30,000; Cequina, ₱45,000. Drawings were equal to salaries and to be taken out evenly throughout the year. With sufficient partnership profit, Marasigan and cabanse could split a bonus equal to 25% of partnership profit, After salaries and bonus ( in no event could be the bonus go below zero).
Remaining profits were to be split as follows: 30% for Marasigan; 30% for Cabanse and 40% for Cequina. For the year, partnership profit was ₱120,000. Compute the ending capital for each partner.
A. Marasigan, ₱125,100; Cabanse, ₱125,100; Cequina, ₱124,800
B. Marasigan, ₱126,000; Cabanse, ₱126,000; Cequina, ₱124,500
C. Marasigan, ₱125,500; Cabanse, ₱125,500; Cequina, ₱124,000
D. Marasigan, ₱155,100; Cabanse, ₱155,100; Cequina, ₱169,800
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller-nobles, Brenda L. Mattison, Ella Mae Matsumura