The partnership of Benito, Carlos and Donato earned a net income of P20,000 in 2019. The following are the postings to their accounts in 2019:

 Instructions:

• Determine the distribution of the partnership net income under each of the following assumptions:
• Net income is divided based on the ending capital ratio inclusive of the drawing accounts.
• Interest of 12% is allowed on the average capital including the temporary changes therein and the balance is to be divided in the ratio of 3:4:3 between Benito, Carlos and Donato, respectively. Postings to the capital accounts during the first fifteen days of the month are to be considered as of the first day of the month and postings during the second half of the month are to be considered as of the  end of the month.
• How much will be the share of each of the partners in a net loss of P500 in Nos. 1 and 2 above.
  
  

Transcribed Image Text:

Exercise 4: Division of Income the partnership of Benito, Carlos and Donato earned a net income of P20,000 in 2019. The following are the postings to their accounts in 2019: Benito Capital Benito, Drawing Jan. 1 12,000 Jan. 1 3,000 Mar. 5 6,000 Carlos, Capital Carlos, Drawing Jan. 1 18,000 June 28 10,000 Oct. 10 12,000 Donato, Capital Donato, Drawing Jan. 1 20,000 Jan. 1 7,000 Oct 10 13,000 Exercise 4: Division of Income the partnership of Benito, Carlos and Donato earned a net income of P20,000 in 2019. The following are the postings to their accounts in 2019: Benito Capital Benito, Drawing Jan. 1 12,000 Jan. 1 3,000 Mar. 5 6,000 Carlos, Capital Carlos, Drawing Jan. 1 18,000 June 28 10,000 Oct. 10 12,000 Donato, Capital Donato, Drawing Jan. 1 20,000 Jan. 1 7,000 Oct 10 13,000

Answer rating: 100% (QA)

A 1 BENITO 120003000 6000 15000 CARLOS 18000 1200010000 20000 DONATO 20000130007000 ... View the full answer