Anna, Emma, and Ina decided to form a partnership. Their capltal accounts are as follows: Anna...
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Anna, Emma, and Ina decided to form a partnership. Their capltal accounts are as follows: Anna Date January 1 300,000 April 1 150,000 May 1 July 1 September 600,000 1 October 1 (450,000) Emma Ina 600,000 600,000 750,000 (200,000) (400,000) The following independent profit and loss agreement are as follows: A. Salaries of P50,000 are given to all partners. Interest of 10% based on their beginning capital is given to Anna and Inna. 20% bonus on profit after bonus is given to Emma. Remainder is to be divided in a ratio of 1:2:3, respectively. Profit was P300,000. B. Salaries of P50,000 are given to Anna and Emma. Interest of 15% to all partners based on their average capital. 25% bonus on profit after bonus, salaries, and interest is given to Inna. Any remainder is to be divided based on their beginning capital ratio. Profit was P1,000,000. Requirements: 1. Determine the share in profit of the partners for each independent case. 2. Determine the capital balance of each partner at year-end for each independent case. Anna, Emma, and Ina decided to form a partnership. Their capltal accounts are as follows: Anna Date January 1 300,000 April 1 150,000 May 1 July 1 September 600,000 1 October 1 (450,000) Emma Ina 600,000 600,000 750,000 (200,000) (400,000) The following independent profit and loss agreement are as follows: A. Salaries of P50,000 are given to all partners. Interest of 10% based on their beginning capital is given to Anna and Inna. 20% bonus on profit after bonus is given to Emma. Remainder is to be divided in a ratio of 1:2:3, respectively. Profit was P300,000. B. Salaries of P50,000 are given to Anna and Emma. Interest of 15% to all partners based on their average capital. 25% bonus on profit after bonus, salaries, and interest is given to Inna. Any remainder is to be divided based on their beginning capital ratio. Profit was P1,000,000. Requirements: 1. Determine the share in profit of the partners for each independent case. 2. Determine the capital balance of each partner at year-end for each independent case.
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To determine the share in profit and capital balance of each partner for each independent case we need to calculate the distribution of profit and upd... View the full answer
Related Book For
Accounting Business Reporting For Decision Making
ISBN: 9780730363415
6th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver
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