PROBLEM IV On December 31, 2017, Ann and Win have capital balances of P40,000 and P32,000 respectively. On April 1, 2018, Ann invested an additional P40,000 while she withdrew P10,000 at the beginning of 4th quarter. Win also made an additional investment of P30,000 and withdrew P2,000 on May 1. Ann is the managing partner and she will receive a bonus equal to 10% reported net income. Both partners shall receive 10% interest on their beginning capital, after which, any reminder shall be divided in the ratio of capital before distribution of net income. The net income of the partnership for 2018 is P60,000. 1. Determine the capital of Ann and Win after distribution of net income.
PROBLEM IV On December 31, 2017, Ann and Win have capital balances of P40,000 and P32,000 respectively. On April 1, 2018, Ann invested an additional P40,000 while she withdrew P10,000 at the beginning of 4th quarter. Win also made an additional investment of P30,000 and withdrew P2,000 on May 1. Ann is the managing partner and she will receive a bonus equal to 10% reported net income. Both partners shall receive 10% interest on their beginning capital, after which, any reminder shall be divided in the ratio of capital before distribution of net income. The net income of the partnership for 2018 is P60,000. 1. Determine the capital of Ann and Win after distribution of net income.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:PROBLEM IV
On December 31, 2017, Ann and Win have capital balances of P40,000 and P32,000 respectively. On April 1, 2018, Ann invested an
additional P40,000 while she withdrew P10,000 at the beginning of 4th quarter. Win also made an additional investment of P30,000 and
withdrew P2,000 on May 1. Ann is the managing partner and she will receive a bonus equal to 10% reported net income. Both partners
shall receive 10% interest on their beginning capital, after which, any reminder shall be divided in the ratio of capital before distribution
of net income. The net income of the partnership for 2018 is P60,000.
1. Determine the capital of Ann and Win after distribution of net income.
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