On January 1, 2018, A, B and C formed ABC Partnership with original capital contribution of P600,000, P1,000,000 and P400,000. A is appointed as managing partner. Read the data below. What is A's share in partnership profit for 2018? During 2018, A, B and C made additional investments of P1,000,000, P400,000, and P600,000,respectively. At the end of 2018, A, B and C made drawings of P400,000, P200,000 and P800,000respectively. At the end of 2018, the partnership had a credit balance in the income summary accountof P2,100,000. The profit or loss agreement of the partners is as follows:10% interest on original capital contribution of the partners• Quarterly salary of P80,000 and P20,000 for A and B, respectivelyBonus to A equivalent to 20% Net Income after interest and salary to all partnersRemainder is to be distributed equally among the partners.

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On January 1, 2018, A, B and C formed ABC Partnership with original capital contribution of P600,000, P1,000,000 and P400,000. A is appointed as managing partner. Read the data below. What is A's share in partnership profit for 2018?

On January 1, 2018, A, B and C formed ABC Partnership with original capital contribution of P600,000, P1,000,000 and P400,000. A is appointed as managing partner. Read the data below. What is A's share in partnership profit for 2018?

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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