5.only.Max and Kenneth are partners in an eatery business with balances of P250,000 andP150,000 respectively. Partnership agreement calls for:12% interest on capital,P6,000 monthly salary for Max as managing partner,remaining profit to be divided equally by the two partners.You are given the following independent situations:a) Result of a one year operation is a net profit of P170,000 after tax.Result of a one year operation was a net loss of P240,000.b)c)Result of a one year operation was a net profit of P120,000 before tax of 20%.d) Result of a six-month operation was a net profit of P110,250 before tax of 20%.e) Result of a three-month operation was a net loss of P75,000.Direction: Record the distribution based on the aforementioned situations supported byprofit/loss allocation table.

Given in the question: Max's Capital ₱2,50,000 Kenneth's Capital ₱1,50,000…

a) Result of a one year operation is a net profit of P170,000 after tax. b) Result of a one year operation was a net loss of P240,000. c) Result of a one year operation was a net profit of P120,000 before tax of 20%. d) Result of a six-month operation was a net profit of P110,250 before tax of 20%. e) Result of a three-month operation was a net loss of P75,000.

a) Result of a one year operation is a net profit of P170,000 after tax. b) Result of a one year operation was a net loss of P240,000. c) Result of a one year operation was a net profit of P120,000 before tax of 20%. d) Result of a six-month operation was a net profit of P110,250 before tax of 20%. e) Result of a three-month operation was a net loss of P75,000.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 2PA: Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances...

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