On 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   What is the capital balance of B on December 31, 2030?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

siness

Accounting

Q&A Library

On 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 14. What is the capital balance of B on December 31, 2030?

On 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 14. What is the capital balance of B on December 31, 2030?

Oh no! Our expert couldn't answer your question.

Don't worry! We won't leave you hanging. Plus, we're giving you back one question for the inconvenience.

Here's what the expert had to say:

Hi and thanks for your question! Unfortunately it looks incomplete. Please resubmit the question with missing information. We've credited a question back to your account. Apologies for the inconvenience.

Ask Your Question Again

1 of 5 questions left

until Jun 16, 2021

Question

On 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

 

What is the capital balance of B on December 31, 2030?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Partners and Partnerships
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education