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 Balance, Jan. 1,2019 P 80,000 P 80,000 P 90,000 P 250,000 Investment, Apr. 1 20,000 20,000 Withdrawal, May 1 (15,000) (15,000) Withdrawal, July 1 (10,000) (10,000) Withdrawal, Sept. 1 (30,000) (30,000) P 90,000 P 65,000 P 60,000 P 215,000 Required: Determine the allocation of the 2019 profit to the partners under each of the following independent assumptions: Profit is P48,000 and profit is divided on the basis of average capital balances. 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. Loss is P35,000, each partner is allowed 10% interest on beginning capital balances, and the balance to be divided equally.
Distribution or
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
Balance, Jan. 1,2019 P 80,000 P 80,000 P 90,000 P 250,000
Investment, Apr. 1 20,000 20,000
Withdrawal, May 1 (15,000) (15,000)
Withdrawal, July 1 (10,000) (10,000)
Withdrawal, Sept. 1 (30,000) (30,000)
P 90,000 P 65,000 P 60,000 P 215,000
Required:
Determine the allocation of the 2019 profit to the partners under each of the following independent assumptions:
- Profit is P48,000 and profit is divided on the basis of average capital balances.
- 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.
- 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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