A partnership has the following capital balances:Pong, Capital P30,000PJ, CapitalJeng, Capital P60,000P90,000Profits and losses are split as follows: Jeng 20% Pong 30% PJ 50%. PJ wants to leave the partnershipand is paid P100,000 from the business based on provisions in the articles of partnership. If thepartnership uses the bonus method, what is the balance of Pong's capital account after PJwithdraws?a.) P24,000b.) P27,000c.) P33,000d.) P36,000

Partnership- A partnership is a firm that involves two or more persons who are equally accountable…

A partnership has the following capital balances: Jeng, Capital P60,000 Pong, Capital P30,000 PJ, Capital P90,000 Profits and losses are split as follows: Jeng 20% Pong 30% PJ 50%. PJ wants to leave the partnership and is paid Pl00,000 from the business based on provisions in the articles of partnership. If the partnership uses the bonus method, what is the balance of Pong's capital account after PJ withdraws? a.) P24,000 b.) P27,000 c.) P33,000 d.) P36,000

A partnership has the following capital balances: Jeng, Capital P60,000 Pong, Capital P30,000 PJ, Capital P90,000 Profits and losses are split as follows: Jeng 20% Pong 30% PJ 50%. PJ wants to leave the partnership and is paid Pl00,000 from the business based on provisions in the articles of partnership. If the partnership uses the bonus method, what is the balance of Pong's capital account after PJ withdraws? a.) P24,000 b.) P27,000 c.) P33,000 d.) P36,000

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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A partnership has the following capital balances: Jeng, Capital P60,000 Pong, Capital P30,000 PJ, Capital P90,000 Profits and losses are split as follows: Jeng 20% Pong 30% PJ 50%. PJ wants to leave the partnership and is paid P100,000 from the business based on provisions in the articles of partnership. If the partnership uses the bonus method, what is the balance of Pong’s capital account after PJ withdraws? Indicate what letter is the answer a.) P24,000 b.) P27,000. c.) P33,000 d.) P36,000
The ABC Partnership shows the following profit and loss ratios and capital balances of its partners: Partner AA 60% P500,000 Partner BB 30% 240,000 Partner CC 10% 90,000 They agreed to admit DD into the partnership with a 25% interest in the partnership by investing P250,000 into the partnership. How much is the capital balance of BB after admission of DD into the partnership?
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