Required: Determine the ending capital balances of both partners based on the following independent assumptions on allocating profits and losses. A P9,600 incentive to Mona, and the remainder to be allocated on the ratio of 1:2, respectively. It is also agreed that Lisa is guaranteed to receive at least P35,000 in case the partnership yields profit. 1. A 6% interest based on average capital balances, a monthly salary of P10,000 each to Mona and Lisa, and the remainder to be allocated equally. 2. A 10% interest on their ending capital balances, a bonus of 11% to Lisa based on profits after deducting the bonus, and the remainder to be divided in a 3:2 ratio, respectively. 3.

Required: Determine the ending capital balances of both partners based on the following independent assumptions on allocating profits and losses. A P9,600 incentive to Mona, and the remainder to be allocated on the ratio of 1:2, respectively. It is also agreed that Lisa is guaranteed to receive at least P35,000 in case the partnership yields profit. 1. A 6% interest based on average capital balances, a monthly salary of P10,000 each to Mona and Lisa, and the remainder to be allocated equally. 2. A 10% interest on their ending capital balances, a bonus of 11% to Lisa based on profits after deducting the bonus, and the remainder to be divided in a 3:2 ratio, respectively. 3.

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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