What is the capital balance of Truly on December 31, 2020? The capital accounts of Truly and
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What is the capital balance of Truly on December 31, 2020?
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The capital accounts of Truly and Honest show the following facts for the fiscal year ended December 31, 2020: Jan. 1 Mar 30 May 10 July 25 Dec 31 Truly Balance Investment Investment Withdrawal Balance 26,000 3,000 7,000 4,000 32,000 Jan 1 May 18 Aug 24 Dec 21 Honest Balance Investment Withdrawal Balance 16,500 5,000 2,000 19,500 The profit and loss account shows a credit balance of P23,800 on December 31. The articles of co-partnership provides that profit or loss shall be distributed accordingly: Interest of 24% on average capital balances and salaries to Truly and Honest of P36,000 and P24,000, respectively. Investments and withdrawals are to be considered as made at the beginning of the month if made before the middle of the month and are to be considered as made at the beginning of the following month if made after the middle of the month. A bonus of 5% of the net profit after bonus shall be given to Truly and any balance in the ratio of 3:2 to Truly and Honest, respectively. The capital accounts of Truly and Honest show the following facts for the fiscal year ended December 31, 2020: Jan. 1 Mar 30 May 10 July 25 Dec 31 Truly Balance Investment Investment Withdrawal Balance 26,000 3,000 7,000 4,000 32,000 Jan 1 May 18 Aug 24 Dec 21 Honest Balance Investment Withdrawal Balance 16,500 5,000 2,000 19,500 The profit and loss account shows a credit balance of P23,800 on December 31. The articles of co-partnership provides that profit or loss shall be distributed accordingly: Interest of 24% on average capital balances and salaries to Truly and Honest of P36,000 and P24,000, respectively. Investments and withdrawals are to be considered as made at the beginning of the month if made before the middle of the month and are to be considered as made at the beginning of the following month if made after the middle of the month. A bonus of 5% of the net profit after bonus shall be given to Truly and any balance in the ratio of 3:2 to Truly and Honest, respectively.
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Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
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