A summary of changes in the capital accounts of the Rialubin, Rabena and Dela Cruz partnership for 2019, before closing, follows: Rialubin Rabena Dela Cruz Total P 80,000 P 80,000 P 90,000 Balance, Jan. 1,2019 Investment, Apr.1 Withdrawal, May 1 Withdrawal, July1 Withdrawal, Sept. 1 P 250,000 20,000 20,000 (15,000) (15,000) (10,000) (10,000) P 65,000 (30,000) P 60,000 (30,000) P 215,000 P 90,000 Required: Determine the allocation of the 2019 profit to the partners under each of the following

A summary of changes in the capital accounts of the Rialubin, Rabena and Dela Cruz partnership for 2019, before closing, follows: Rialubin Rabena Dela Cruz Total P 80,000 P 80,000 P 90,000 Balance, Jan. 1,2019 Investment, Apr.1 Withdrawal, May 1 Withdrawal, July1 Withdrawal, Sept. 1 P 250,000 20,000 20,000 (15,000) (15,000) (10,000) (10,000) P 65,000 (30,000) P 60,000 (30,000) P 215,000 P 90,000 Required: Determine the allocation of the 2019 profit to the partners under each of the following

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Distribution or Profits or Losses Based on Partner's Agreement
A summary of changes in the capital accounts of the Rialubin, Rabena and Dela Cruz
partnership for 2019, before closing, follows:
Rialubin
Rabena
Dela Cruz
Total
P 80,000
P 80,000
P 250,000
Balance, Jan. 1,2019
Investment, Apr. 1
P 90,000
20,000
20,000
Withdrawal, May 1
Withdrawal, July 1
Withdrawal, Sept. 1
(15,000)
(10,000)
(15,000)
(10,000)
(30,000)
(30,000)
P 215,000
P 90,000
P 65,000
P 60,000
Required:
Determine the allocation of the 2019 profit to the partners under each of the following
independent assumptions:
1. Profit is P48,000 and profit is divided on the basis of average capital balances.
2. Profit is P50,000. Rialubin receives a bonues of 10% of profit for managing the business, and
the balance to be divided on the basis of beginning capital balances.
3. Loss is P35,000, each partner is allowed 10% interest on beginning capital balances, and the
balance to be divided equally.

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