AB Partnership earned profit of ₱120,000 in 20x1. What is the capital balance of B on December 31, 20x1?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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AB Partnership was formed on February 28, 20x1. Partner A invested ₱150,000
cash while Partner B invested land that he originally bought for ₱70,000 but has a
current fair value of ₱180,000. B invested additional cash of ₱60,000 on November 1, 20x1. The partnership contract states the following:

AB Partnership earned profit of ₱120,000 in 20x1. What is the capital balance of B on December 31, 20x1?

А
Monthly salary (recognized as
withdrawn
A
B
10,000
20,000
and
expenses
periodically)
Interest on beginning capital
Bonus on profit before salaries and 20%
interest but after bonus
12% р.а.
12% р.а.
Remaining profit or loss
50%
50%
Transcribed Image Text:А Monthly salary (recognized as withdrawn A B 10,000 20,000 and expenses periodically) Interest on beginning capital Bonus on profit before salaries and 20% interest but after bonus 12% р.а. 12% р.а. Remaining profit or loss 50% 50%
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