15. Ravelo and Febrero are partners agreeing to allow monthly salaries of P6,000 and P5,000, respectively; 6% interest on the capital investment at the beginning of the year of P300,000 and P230,000, respectively; and the balance equally. The first year registered a profit of P100,000. The partners' share should be Ravelo, P58,100; Febrero, P41,900. b. Ravelo, P56,600; Febrero, P43,400. C. Ravelo, P54,500; Febrero, P45,500. d. Ravelo, P50,000; Febrero, P50,000. a.

15. Ravelo and Febrero are partners agreeing to allow monthly salaries of P6,000 and P5,000, respectively; 6% interest on the capital investment at the beginning of the year of P300,000 and P230,000, respectively; and the balance equally. The first year registered a profit of P100,000. The partners' share should be Ravelo, P58,100; Febrero, P41,900. b. Ravelo, P56,600; Febrero, P43,400. C. Ravelo, P54,500; Febrero, P45,500. d. Ravelo, P50,000; Febrero, P50,000. a.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Partnership Accounting

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.

Partner Admission and Withdrawal

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.

Question

15. Ravelo and Febrero are partners agreeing to allow monthly salaries of P6,000 and
P5,000, respectively; 6% interest on the capital investment at the beginning of the
year of P300,000 and P230,000, respectively; and the balance equally. The first year
registered a profit of P100,000. The partners' share should be
a. Ravelo, P58,100; Febrero, P41,900.
b. Ravelo, P56,600; Febrero, P43,400.
C. Ravelo, P54,500; Febrero, P45,500.
d. Ravelo, P50,000; Febrero, P50,000.
С.

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