Love and Faith have been operating an accounting firm as partners for a number of years and at the beginning of 2016, their capital balances were P120,000 and P150,000, respectively. During 2019, Love invested an additional P20,000 on April 1 and withdrew P12,000 on August 30. Faith withdrew P24,000 on May 1 and invested P10,000 on November 1. In addition, Love and Faith withdrew their salary allowances of P36,000 and P42,000, respectively. At year-end 2016 total capital of the Love and Faith partnership was P360,000. Love and Faith share income after salary allowances in a ratio of 55:45. The share of Love on the 2019 net income is
Love and Faith have been operating an accounting firm as partners for a number of years and at the beginning of 2016, their capital balances were P120,000 and P150,000, respectively. During 2019, Love invested an additional P20,000 on April 1 and withdrew P12,000 on August 30. Faith withdrew P24,000 on May 1 and invested P10,000 on November 1. In addition, Love and Faith withdrew their salary allowances of P36,000 and P42,000, respectively. At year-end 2016 total capital of the Love and Faith partnership was P360,000. Love and Faith share income after salary allowances in a ratio of 55:45. The share of Love on the 2019 net income is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Love and Faith have been operating an accounting firm as partners for a number of years and at the beginning of 2016, their capital balances were P120,000 and P150,000, respectively. During 2019, Love invested an additional P20,000 on April 1 and withdrew P12,000 on August 30. Faith withdrew P24,000 on May 1 and invested P10,000 on November 1. In addition, Love and Faith withdrew their salary allowances of P36,000 and P42,000, respectively. At year-end 2016 total capital of the Love and Faith partnership was P360,000. Love and Faith share income after salary allowances in a ratio of 55:45.
The share of Love on the 2019 net income is
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