Item No. 25 is based on the following information:Ree, Ver, and Kwai are partners having capital balances of P 180,000,P 120,000, and P 200,000, respectively on January 1, 200B. Their profit and losssharing agreement provides for the following:o Salary allowance of P 60,000 each;Bonus of 20% of the profit after salaries and bonus; ando Remainder is to be divided 6:2:2.The bonus is to be split between Ver and Kwai. During 200B, thepartnership earned profit of P 276,000.25. Assuming all the partners withdrew their salary allowances during the year,how much would be the capital balance of Ver on December 31, 200B?a. P 84,000.c. P 144,000.b. P 120,000.d. P 204,000.

In the context of the given question, we should compute the available balance that was transferred…

Item No. 25 is based on the following information: Ree, Ver, and Kwai are partners having capital balances of P 180,000, P 120,000, and P 200,000, respectively on January 1, 200B. Their profit and loss sharing agreement provides for the following: o Salary allowance of P 60,000 each; Bonus of 20% of the profit after salaries and bonus; and Remainder is to be divided 6:2:2. The bonus is to be split between Ver and Kwai. During 200B, the partnership earned profit of P 276,000. 25. Assuming all the partners withdrew their salary allowances during the year how much would be the capital balance of Ver on December 31, 200B? a. P 84,000. c. P 144,000. b. P 120,000. d. P 204,000.

Item No. 25 is based on the following information: Ree, Ver, and Kwai are partners having capital balances of P 180,000, P 120,000, and P 200,000, respectively on January 1, 200B. Their profit and loss sharing agreement provides for the following: o Salary allowance of P 60,000 each; Bonus of 20% of the profit after salaries and bonus; and Remainder is to be divided 6:2:2. The bonus is to be split between Ver and Kwai. During 200B, the partnership earned profit of P 276,000. 25. Assuming all the partners withdrew their salary allowances during the year how much would be the capital balance of Ver on December 31, 200B? a. P 84,000. c. P 144,000. b. P 120,000. d. P 204,000.

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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Question

Item No. 25 is based on the following information:
Ree, Ver, and Kwai are partners having capital balances of P 180,000,
P 120,000, and P 200,000, respectively on January 1, 200B. Their profit and loss
sharing agreement provides for the following:
o Salary allowance of P 60,000 each;
Bonus of 20% of the profit after salaries and bonus; and
o Remainder is to be divided 6:2:2.
The bonus is to be split between Ver and Kwai. During 200B, the
partnership earned profit of P 276,000.
25. Assuming all the partners withdrew their salary allowances during the year,
how much would be the capital balance of Ver on December 31, 200B?
a. P 84,000.
c. P 144,000.
b. P 120,000.
d. P 204,000.

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