on October 1. GHI made a withdrawal of P30,000 on November 1. Compute for the share of income of DEF withensalety of prode
on October 1. GHI made a withdrawal of P30,000 on November 1. Compute for the share of income of DEF withensalety of prode
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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7. Show solution in good accounting form
![ABC, DEF and GHI formed a partnership on April 1, 2022 and contributed
P300,000, P200,000 and P500,000 respectively. The partners agreed that
income will be disturbed as follows:
> Annual Salary: ABC for P24,000, DEF for P18,000 and GHI for
P12,000
> Interest of 12% on the average capital during 2022 of the three
partners
➤ The remainder in the ratio of 40%, 40% and 20% for ABC, DEF and
GHI respectively.
The operating income for the year ending December 31, 2022 amounted to
P176,000. ABC contributed additional capital of P60,000 on July 1, 2022
and made a withdrawal of P20,000 on October 1. DEF contributed
additional capital of P40,000 on August 1 and made a withdrawal of P5,000
on October 1. GHI made a withdrawal of P30,000 on November 1. Compute
for the share of income of DEF
very ER180](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F95a8ac68-38bb-4983-b43c-068f6758ffef%2Ff6911d3a-a7f1-4898-b2cd-53bffec48a82%2Fy9ah8si_processed.png&w=3840&q=75)
Transcribed Image Text:ABC, DEF and GHI formed a partnership on April 1, 2022 and contributed
P300,000, P200,000 and P500,000 respectively. The partners agreed that
income will be disturbed as follows:
> Annual Salary: ABC for P24,000, DEF for P18,000 and GHI for
P12,000
> Interest of 12% on the average capital during 2022 of the three
partners
➤ The remainder in the ratio of 40%, 40% and 20% for ABC, DEF and
GHI respectively.
The operating income for the year ending December 31, 2022 amounted to
P176,000. ABC contributed additional capital of P60,000 on July 1, 2022
and made a withdrawal of P20,000 on October 1. DEF contributed
additional capital of P40,000 on August 1 and made a withdrawal of P5,000
on October 1. GHI made a withdrawal of P30,000 on November 1. Compute
for the share of income of DEF
very ER180
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