A and B formed a partnership. The partnership agreement stipulates the following: ● Annual salary allowance of P40,000 for A. Interest of 10% on the weighted average capital balance of B. The partners share profits and losses in a 80:20 ratio. During the period the partnership earned profit of P100,000. The movements in B's capital account are as follows: B, Capital 60,000 beg. Aug. 1 withdrawal 30,000 20,000 Mar. 31 additional investment Oct. 1 additional investment 40,000 10,000 Dec. 1 additional investment end. 100,000 How much is the share of A in the partnership profit?

A and B formed a partnership. The partnership agreement stipulates the following: ● Annual salary allowance of P40,000 for A. Interest of 10% on the weighted average capital balance of B. The partners share profits and losses in a 80:20 ratio. During the period the partnership earned profit of P100,000. The movements in B's capital account are as follows: B, Capital 60,000 beg. Aug. 1 withdrawal 30,000 20,000 Mar. 31 additional investment Oct. 1 additional investment 40,000 10,000 Dec. 1 additional investment end. 100,000 How much is the share of A in the partnership profit?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PB: The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a...

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How much was the share of A?
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