ABC Partnership was formed in year 2021. Just before distribution of profit and loss, the following accounts appeared in the books of the partnership at the end of year 2021. А, саpital 5,000 1/1 75,000 9/1 115,000 B, capital 20,000 1/1 6/30 5/1 10/1 90,000 60,000 С. саpital 8/1 50,000 1/1 235,000 Revenue and expense summary 240,000 6/1 100,000 X If profits are divided as follows, what is the share of A? * a. An 8% interest is given to each partners' ending capital. b. Partners A and B will receive P2,500 monthly salary while partners C will receive P3,000 monthly. c. 10% bonus based on income after bonus is given to A. d. Residual income is divided based on their ending capital.
ABC Partnership was formed in year 2021. Just before distribution of profit and loss, the following accounts appeared in the books of the partnership at the end of year 2021. А, саpital 5,000 1/1 75,000 9/1 115,000 B, capital 20,000 1/1 6/30 5/1 10/1 90,000 60,000 С. саpital 8/1 50,000 1/1 235,000 Revenue and expense summary 240,000 6/1 100,000 X If profits are divided as follows, what is the share of A? * a. An 8% interest is given to each partners' ending capital. b. Partners A and B will receive P2,500 monthly salary while partners C will receive P3,000 monthly. c. 10% bonus based on income after bonus is given to A. d. Residual income is divided based on their ending capital.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem:
ABC Partnership was formed in year 2021. Just before distribution of profit and loss,
the following accounts appeared in the books of the partnership at the end of
year 2021.
В. сарital
A, capital
5/1 5,000 1/1 75,000 10/1
9/1 115,000
20,000 1/1
6/30
90,000
60,000
С, саpital
8/1 50,000 1/1 235,000
Revenue and expense summary
240,000
6/1 100,000
X If profits are divided as follows, what is the share of A? *
a. An 8% interest is given to each partners' ending capital.
b. Partners A and B will receive P2,500 monthly salary while partners C will
receive P3,000 monthly.
C. 10% bonus based on income after bonus is given to A.
d. Residual income is divided based on their ending capital.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb4f4fa6b-20c2-4fa4-9967-1a980bac2950%2F6bcef185-bf62-4596-ad1c-1c633320cbbd%2Fp0y1pc_processed.png&w=3840&q=75)
Transcribed Image Text:Problem:
ABC Partnership was formed in year 2021. Just before distribution of profit and loss,
the following accounts appeared in the books of the partnership at the end of
year 2021.
В. сарital
A, capital
5/1 5,000 1/1 75,000 10/1
9/1 115,000
20,000 1/1
6/30
90,000
60,000
С, саpital
8/1 50,000 1/1 235,000
Revenue and expense summary
240,000
6/1 100,000
X If profits are divided as follows, what is the share of A? *
a. An 8% interest is given to each partners' ending capital.
b. Partners A and B will receive P2,500 monthly salary while partners C will
receive P3,000 monthly.
C. 10% bonus based on income after bonus is given to A.
d. Residual income is divided based on their ending capital.
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