Exercise 3-2 (Division of Profit; Interest on Average Capital)Danica and Jenson are partners. Their capital accounts during the fiscal year 2019 were asfollows:Danica, Capital120,000 1/1 800,0004/1 160,00060,000J enson. Capital3/1 180,000 1/1 1,200,0007/19/1140,00011/110/1100,000Profit of the partnership is P250,000 for the year. Determine the partners shared profit underthe following assumptions:1. Each partner is to be credited 12% interest on his average capital.2. Any remaining profit or loss is to be divided equally.Follow the instructions strictly

Danica Capital: January to March (P800000 * 3) P24,00,000 April to August [(P800000 + P160000)…

Danica and Jenson are partners. Their capital accounts during the fiscal year 2019 were as follows: Danica, Capital. 800,000 4/1 160,000 11/1 60,000 Jenson, Capital 3/1 180,000 1/1 1,200,000 7/1 9/1 120,000 1/1 140,000 100,000 10/1 Profit of the partnership is P250,000 for the year. Determine the partners shared profit under the following assumptions: 1. Each partner is to be credited 12% interest on his average capital. 2. Any remaining profit or loss is to be divided equally.

Danica and Jenson are partners. Their capital accounts during the fiscal year 2019 were as follows: Danica, Capital. 800,000 4/1 160,000 11/1 60,000 Jenson, Capital 3/1 180,000 1/1 1,200,000 7/1 9/1 120,000 1/1 140,000 100,000 10/1 Profit of the partnership is P250,000 for the year. Determine the partners shared profit under the following assumptions: 1. Each partner is to be credited 12% interest on his average capital. 2. Any remaining profit or loss is to be divided equally.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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