Carlo and John have been operating an accounting firm for a number of years. At the beginning of 2008, their capital balances were P60,000 and P75,000, respectively. During 2008, Carlo invested an additional P10,000 on April 1 and permanently withdrew P6,000 on August 31; John also withdrew P12,000 on May 1 and invested P6,000 on November 1. In addition, Carlo and John withdrew their salary allowances of P18,000 and P24,000, respectively. At year-end, total capital of the Carlo and John partnership was P182,000. Carlo and John share income after salary allowances in a 6:4 ratio. How much is the share of each partner in the net income?
Carlo and John have been operating an accounting firm for a number of years. At the beginning of 2008, their capital balances were P60,000 and P75,000, respectively. During 2008, Carlo invested an additional P10,000 on April 1 and permanently withdrew P6,000 on August 31; John also withdrew P12,000 on May 1 and invested P6,000 on November 1. In addition, Carlo and John withdrew their salary allowances of P18,000 and P24,000, respectively. At year-end, total capital of the Carlo and John partnership was P182,000. Carlo and John share income after salary allowances in a 6:4 ratio. How much is the share of each partner in the net income?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Carlo and John have been operating an accounting firm for a number of years. At the beginning of 2008, their capital balances were P60,000 and P75,000, respectively. During 2008, Carlo invested an additional P10,000 on April 1 and permanently withdrew P6,000 on August 31; John also withdrew P12,000 on May 1 and invested P6,000 on November 1. In addition, Carlo and John withdrew their salary allowances of P18,000 and P24,000, respectively. At year-end, total capital of the Carlo and John partnership was P182,000. Carlo and John share income after salary allowances in a 6:4 ratio. How much is the share of each partner in the net income?
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