32. On January 1, 20x5, DD and EE decided to form a partnership. At the end of the year, the partnership made a net income of P120,000. The capital accounts of the partnership show the following transactions. DD, Capital Cr. EE, Capital Dr. Dr. Cr: P40,000 P25,000 January 1 April 1. June 1 August 1 September 1 October 1 . December 1 P5,000 10,000 10,000 P3,000 1,000 5,000 4,000 5,000 Scanned with CamScanner Assuming that an interest of 20% per annum is given on average capital and the balance of the profits is allocated equally, the allocation of profits should be: a. DD, P60,000; EE, P59,400 b. DD, P61,200; EE, P58,80O C. DD, P67,200; EE, P52,800 d. DD, P68,800; EE, P51,200
32. On January 1, 20x5, DD and EE decided to form a partnership. At the end of the year, the partnership made a net income of P120,000. The capital accounts of the partnership show the following transactions. DD, Capital Cr. EE, Capital Dr. Dr. Cr: P40,000 P25,000 January 1 April 1. June 1 August 1 September 1 October 1 . December 1 P5,000 10,000 10,000 P3,000 1,000 5,000 4,000 5,000 Scanned with CamScanner Assuming that an interest of 20% per annum is given on average capital and the balance of the profits is allocated equally, the allocation of profits should be: a. DD, P60,000; EE, P59,400 b. DD, P61,200; EE, P58,80O C. DD, P67,200; EE, P52,800 d. DD, P68,800; EE, P51,200
Chapter1: Financial Statements And Business Decisions
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