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On January 1, 2022, Ana and Bea formed AnBea partnership with a total agreed capital of 5,000,000 and a capital interest ratio of 70:30. The following were ascertained during the year as to distribution of profits and losses: a) A will receive quarterly salaries of P100,000. b) 5% interest on their initial capital c) Any remainder will be shared by their capital interest ratio. At the end of the year, the partnership had a P500,000 credit balance in its income summary account. What is the share in the net income or (loss) of Partner Ana?  a. 380,000 b. 440,000 c. 470,000

On January 1, 2022, Ana and Bea formed AnBea partnership with a total agreed capital of 5,000,000 and a capital interest ratio of 70:30. The following were ascertained during the year as to distribution of profits and losses: a) A will receive quarterly salaries of P100,000. b) 5% interest on their initial capital c) Any remainder will be shared by their capital interest ratio. At the end of the year, the partnership had a P500,000 credit balance in its income summary account. What is the share in the net income or (loss) of Partner Ana?  a. 380,000 b. 440,000 c. 470,000

FINANCIAL ACCOUNTING
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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On January 1, 2022, Ana and Bea formed AnBea partnership with a total agreed capital of 5,000,000 and a capital interest ratio of 70:30. The following were ascertained during the year as to distribution of profits and losses:

a) A will receive quarterly salaries of P100,000.
b) 5% interest on their initial capital
c) Any remainder will be shared by their capital interest ratio. At the end of the year, the partnership had a P500,000 credit balance in its income summary account.

What is the share in the net income or (loss) of Partner Ana? 

a. 380,000
b. 440,000
c. 470,000
d. 491,000

What is the capital balance of Partner B on December 31, 2020?
 
a. 1,509,000
b. 1,620,000
c. 1,560,000
d. 1,530,000
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