n January 1, 2030, A, B and C formed ABC Partnership with original capital contribution of P600,000, P1,100,000 and P400,000. A is appointed as managing partner. During 2030, A, B and C made additional investments of P1,000,000, P400,000 and P600,000, respectively. At the end of 2030, A, B and C made drawings of P400,000, P200,000 and P800,000, respectively. At the end of 2030, the capital balance of C is reported at P640,000. The profit or loss agreement of the partners is provided below: • 10% interest on original capital contribution of the partners. • Quarterly salary of P80,000 and P20,000 for A and B, respectively. • Bonus to A equivalent to 20% of Net Income after interest and salary to all partners • Remainder is to be distributed equally among the partners. 11. What is the partnership profit for the year ended December 31, 2030?
On January 1, 2030, A, B and C formed ABC
P600,000, P1,100,000 and P400,000. A is appointed as managing partner.
During 2030, A, B and C made additional investments of P1,000,000, P400,000 and P600,000,
respectively. At the end of 2030, A, B and C made drawings of P400,000, P200,000 and P800,000,
respectively.
At the end of 2030, the capital balance of C is reported at P640,000.
The profit or loss agreement of the partners is provided below:
• 10% interest on original capital contribution of the partners.
• Quarterly salary of P80,000 and P20,000 for A and B, respectively.
• Bonus to A equivalent to 20% of Net Income after interest and salary to all partners
• Remainder is to be distributed equally among the partners.
11. What is the partnership profit for the year ended December 31, 2030?
Step by step
Solved in 2 steps with 2 images
