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7. What is the capital balance of Love on December 31, 2020?

7. What is the capital balance of Love on December 31, 2020?

FINANCIAL ACCOUNTING
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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January 1, 2020 investment P1, 000, 000 P500 ,000 March 31, 2020 investment 100, 000 July 1, 2020 withdrawal (200,000) September 30, 2020 withdrawal (200,000) October 1, 2020 investment 700,000 The partnership reported net income of P 1,000, 000 for year 2020. 7. What is the capital balance of Love on December 31, 2020? a) 1, 951,500 b) 1,451,500 c) 2,151,500 d) 1,251,500
Transcribed Image Text:January 1, 2020 investment P1, 000, 000 P500 ,000 March 31, 2020 investment 100, 000 July 1, 2020 withdrawal (200,000) September 30, 2020 withdrawal (200,000) October 1, 2020 investment 700,000 The partnership reported net income of P 1,000, 000 for year 2020. 7. What is the capital balance of Love on December 31, 2020? a) 1, 951,500 b) 1,451,500 c) 2,151,500 d) 1,251,500
On January 1, 2020, Love and Faith formed Love and Faith Partnership and the articles of co- partnership provide that profit or loss shall be distributed accordingly: 10% interest on average capital balance P50,000 and P100,000 quarterly salary for Love and Faith, respectively The remainder shall be distributed in the ratio of 3:2 for Love and Faith, respectively The following transactions regarding the capital balance of the partners for the year 2020 are provided: Love, Capital Faith, Capital
Transcribed Image Text:On January 1, 2020, Love and Faith formed Love and Faith Partnership and the articles of co- partnership provide that profit or loss shall be distributed accordingly: 10% interest on average capital balance P50,000 and P100,000 quarterly salary for Love and Faith, respectively The remainder shall be distributed in the ratio of 3:2 for Love and Faith, respectively The following transactions regarding the capital balance of the partners for the year 2020 are provided: Love, Capital Faith, Capital
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