Eugene and Alfred are partners in their Ghost Fighting business. Alfred is the managing partner. As of December 2020, their capital account showed the following: Eugene Capital Dr. 1-Jul 45,000 Dr. 1-Dec 30,000 Cr. Jan. 1- 300,000 Cr. Nov. - 105,000 Cr. Apr. - 30,000 1-Jan Alfred Capital Dr. 1-Apr 90000 Cr. Jan - 450000 Dr. 1-Dec - 105000 Cr. Jun - 150000 Cr. oct.- 195000 CASE I: Assuming the partnership earned a net profit of P360,000. CASE II: Assuming the partnership incurred a net loss of P68,000 Required: On your answer sheet (yellow pad), using the following agreements, distribute the profit and losses in Case I & II to Eugene & Alfred. Make a journal entry after your computation. 1) Equally 2) 2:4 ratio to Eugene and Alfred, respectively 3) 60% 40% ratio respectively
Eugene and Alfred are partners in their Ghost Fighting business. Alfred is the managing partner. As of December 2020, their capital account showed the following: Eugene Capital Dr. 1-Jul 45,000 Dr. 1-Dec 30,000 Cr. Jan. 1- 300,000 Cr. Nov. - 105,000 Cr. Apr. - 30,000 1-Jan Alfred Capital Dr. 1-Apr 90000 Cr. Jan - 450000 Dr. 1-Dec - 105000 Cr. Jun - 150000 Cr. oct.- 195000 CASE I: Assuming the partnership earned a net profit of P360,000. CASE II: Assuming the partnership incurred a net loss of P68,000 Required: On your answer sheet (yellow pad), using the following agreements, distribute the profit and losses in Case I & II to Eugene & Alfred. Make a journal entry after your computation. 1) Equally 2) 2:4 ratio to Eugene and Alfred, respectively 3) 60% 40% ratio respectively
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Eugene and Alfred are partners in their Ghost Fighting business. Alfred is the managing partner. As of December 2020, their capital account
showed the following:
Eugene Capital
Dr. 1-Jul 45,000
Dr. 1-Dec 30,000
Cr. Jan. 1- 300,000
Cr. Nov. - 105,000
Cr. Apr. - 30,000
1-Jan
Alfred Capital
Dr. 1-Apr 90000
Cr. Jan - 450000
Dr. 1-Dec - 105000
Cr. Jun - 150000
Cr. oct.- 195000
CASE I: Assuming the partnership earned a net profit of P360,000.
CASE II: Assuming the partnership incurred a net loss of P68,000
Required: On your answer sheet (yellow pad), using the following agreements, distribute the profit and losses in Case I & II to Eugene & Alfred. Make a journal entry after your computation.
1) Equally
2) 2:4 ratio to Eugene and Alfred, respectively
3) 60% 40% ratio respectively
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education