PLS SHOW SOLUTION 6. What is B's share in partnership profit for 2018?a) 200,000b) 290,000c) 50,000d) 90,000 On January 1, 2018, A, B and C formed ABC Partnership with original capital contribution of P300,000,P500, 000 and P200,000. A is appointed as managing partner.During 2018, A, B and C made additional investments of P500,000, P200,000 and P300,000,respectively. At the end of 2018, A,B and C made drawings of P200,000, P 100, 000 and P 400, 000,respectively. At the end of 2018, the capital balance of C is reported at P320,000. The profit or lossagreement of the partners is as follows:10% interest on original capital contribution of the partnersQuarterly salary of P40, 000 and P10, 000 for A and B respectively.Bonus to A is equivalent to 20% of net income after interest and salary to allpartnersRemainder is to be distributed equally among the partners

Working note: Computation of remainder amount to be distributed equally among partners:

On January 1, 2018, A, B and C formed ABC Partnership with original capital contribution of P300,000, P500, 000 and P200,000. A is appointed as managing partner. During 2018, A, B and C made additional investments of P500,000, P200,000 and P300,000, respectively. At the end of 2018, A,B and C made drawings of P200,00O, P 100, 000 and P 400, 000, respectively. At the end of 2018, the capital balance of C is reported at P320,000. The profit or loss agreement of the partners is as follows: 10% interest on original capital contribution of the partners Quarterly salary of P40, 000 and P10, 000 for A and B respectively. Bonus to A is equivalent to 20% of net income after interest and salary to all partners Remainder is to be distributed equally among the partners

On January 1, 2018, A, B and C formed ABC Partnership with original capital contribution of P300,000, P500, 000 and P200,000. A is appointed as managing partner. During 2018, A, B and C made additional investments of P500,000, P200,000 and P300,000, respectively. At the end of 2018, A,B and C made drawings of P200,00O, P 100, 000 and P 400, 000, respectively. At the end of 2018, the capital balance of C is reported at P320,000. The profit or loss agreement of the partners is as follows: 10% interest on original capital contribution of the partners Quarterly salary of P40, 000 and P10, 000 for A and B respectively. Bonus to A is equivalent to 20% of net income after interest and salary to all partners Remainder is to be distributed equally among the partners

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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