Rommel and Racquel are partners dividing net income as follows: Salary allowance of P5,000 is allowed to Rommel; remainder is divided in the ratio of 4:6. The capital of Rommel and Racquel on January 1, 2019 were P30,000 and P35,000 respectively, Rommel withdrew his salary allowance for 2019 of P5,000 in October. Net income for 2019 amounted to P30,000. Required: Statement of Partners' capital for 2019.
Rommel and Racquel are partners dividing net income as follows: Salary allowance of P5,000 is allowed to Rommel; remainder is divided in the ratio of 4:6. The capital of Rommel and Racquel on January 1, 2019 were P30,000 and P35,000 respectively, Rommel withdrew his salary allowance for 2019 of P5,000 in October. Net income for 2019 amounted to P30,000. Required: Statement of Partners' capital for 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Exercise 7: Statement of Partners’ Capital
Rommel and Racquel are partners dividing net income as follows:
Salary allowance of P5,000 is allowed to Rommel; remainder is divided in the ratio of 4:6.
The capital of Rommel and Racquel on January 1, 2019 were P30,000 and P35,000 respectively, Rommel withdrew his salary allowance for 2019 of P5,000 in October. Net income for 2019 amounted to P30,000.
Required: Statement of Partners’ capital for 2019.
Transcribed Image Text:Exercise 7: Statement of Partners' Capital
Rommel and Racquel are partners dividing net income as follows:
Salary allowance of P5,000 is allowed to Rommel; remainder is divided in the ratio
of 4:6.
The capital of Rommel and Racquel on January 1, 2019 were P30,000 and P35,000
respectively, Rommel withdrew his salary allowance for 2019 of P5,000 in October. Net income
for 2019 amounted to P30,000.
Required: Statement of Partners' capital for 2019.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education