7. Amber and Berta share profits and losses equally after a 10% interest on their average capital balances. Consider additional capital contributions and permanent withdrawals as made at the end of the month in computing for average capitals. Total net income after tax for 2022 is P320,000. January 1 capital balances Additional investment of capital: March 15 Permanent withdrawal of capital: April 12 Drawings for each on October 28 Amber P 105,000 20,000 50,000 Berta P 140,000 (15,000) 40,000 Direction: Give the entries to record the distribution based on the following two options: a) Partners' drawings are not used in determining the average capital balances. b) All changes in capital and drawings should be considered in determining the average capital balances.

7. Amber and Berta share profits and losses equally after a 10% interest on their average capital balances. Consider additional capital contributions and permanent withdrawals as made at the end of the month in computing for average capitals. Total net income after tax for 2022 is P320,000. January 1 capital balances Additional investment of capital: March 15 Permanent withdrawal of capital: April 12 Drawings for each on October 28 Amber P 105,000 20,000 50,000 Berta P 140,000 (15,000) 40,000 Direction: Give the entries to record the distribution based on the following two options: a) Partners' drawings are not used in determining the average capital balances. b) All changes in capital and drawings should be considered in determining the average capital balances.

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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