Homework Help is Here – Start Your Trial Now!
Business
Accounting
Interest of 12% on the average capital during 2022 of the three partners

Interest of 12% on the average capital during 2022 of the three partners

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
Question
ABC, DEF and GHI formed a partnership on April 1, 2022 and contributed P300,000, P200,000 and P500,000 respectIVERS The partners agreed that income will be disturbed as as follows: Annual Salary: ABC for P24,000, DEF for P18,000 and GHI for P12,000 ▸ Interest of 12% on the average capital during 2022 of the three partners ➤ The remainder in the ratio of 40%, 40% and 20% for ABC, DEF and GHI respectively. The operating income for the year ending December 31, 2022 amounted to P176,000. ABC contributed additional capital of P60,000 on July 1, 2022 and made a withdrawal of P20,000 on October 1h DEF contributed additional capital of P40,000 on August 1 and made a withdrawal of P5,000 on October 1. GHI made a withdrawal of P30,000 on November 1. Compute for the share of income of DEF validation of grade; 3rd violation- suspension DETreadmission with invalidation of grade 131 VERS-1502
Transcribed Image Text:ABC, DEF and GHI formed a partnership on April 1, 2022 and contributed P300,000, P200,000 and P500,000 respectIVERS The partners agreed that income will be disturbed as as follows: Annual Salary: ABC for P24,000, DEF for P18,000 and GHI for P12,000 ▸ Interest of 12% on the average capital during 2022 of the three partners ➤ The remainder in the ratio of 40%, 40% and 20% for ABC, DEF and GHI respectively. The operating income for the year ending December 31, 2022 amounted to P176,000. ABC contributed additional capital of P60,000 on July 1, 2022 and made a withdrawal of P20,000 on October 1h DEF contributed additional capital of P40,000 on August 1 and made a withdrawal of P5,000 on October 1. GHI made a withdrawal of P30,000 on November 1. Compute for the share of income of DEF validation of grade; 3rd violation- suspension DETreadmission with invalidation of grade 131 VERS-1502
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS