The following transactions regarding the capital balance of the partners for year 2023 are provided: January 1, 2023 investment March 31, 2023 investment July 30, 2023 withdrawal September 30, 2023 withdrawal November 1, 2023 investment Psalm, Capital P1,200,000 (300,000) 800,000 Trisha, Capital P550,000 200,000 (300,000) The chief accountant of the partnership reported net income of P800,000 for year 2023. Required: Calculate the capital balance of Psalm and Tricia on December 31, 2023.
The following transactions regarding the capital balance of the partners for year 2023 are provided: January 1, 2023 investment March 31, 2023 investment July 30, 2023 withdrawal September 30, 2023 withdrawal November 1, 2023 investment Psalm, Capital P1,200,000 (300,000) 800,000 Trisha, Capital P550,000 200,000 (300,000) The chief accountant of the partnership reported net income of P800,000 for year 2023. Required: Calculate the capital balance of Psalm and Tricia on December 31, 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 3-6. Net Income distribution and computation of
partner's capital balance
On January 1, 2023, Psalm and Trisha formed PS Partnership.
The articles of co-partnership provides that profit or loss shall
be distributed accordingly:
• 15% interest on average capital balance.
●
P30,000 and P80,000 quarterly salary for Psalm and
Trisha, respectively.
●
The remainder shall be distributed in the ratio of 4:6 for
Psalm and Trisha, respectively.
Transcribed Image Text:The following transactions regarding the capital balance of
the partners for year 2023 are provided:
January 1, 2023 investment
March 31, 2023 investment
July 30, 2023 withdrawal
September 30, 2023 withdrawal
November 1, 2023 investment
Psalm, Capital
P1,200,000
(300,000)
800,000
Trisha, Capital
P550,000
200,000
(300,000)
The chief accountant of the partnership reported net income
of P800,000 for year 2023.
Required:
Calculate the capital balance of Psalm and Tricia on
December 31, 2023.
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