The partners of Dan and Ken are engaged in trading. Dan's original capital was P40,000andKen 's was P60,000. They agreed to share profits and losses as follows:DanKenPhp28,00010%30%SalariesInterest on original capitalBalancePhp40,00010%70%а. Р44,600b. Р46,400If the profits for the year were P120,000, what share of the profits would Dan receive?c. P57,400d. P75,600а. Р2,600b. (Р22,600)[f the losses for the year were P20,000, what share of the loss would Ken receive?c. (P2,600)d. P5,200

Formula: Interest on capital = Capital amount x interest rate.

Answered: The partners of Dan and Ken are engaged…

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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The partners of Dan and Ken are engaged in trading. Dan's original capital was P40,000 and Ken 's was P60,000. They agreed to share profits and losses as follows: Dan Ken Php28,000 10% Php40,000 10% 70% Salaries Interest on original capital Balance 30% n7 - 15. If the profits for the year were P120,000, what share of the profits would Dan receive? а. Р4,600 b. P46,400 с. Р57,400 d. P75,600
The partners of Dan and Ken are engaged in trading. Dan’s original capital was P40,000 and Ken ‘s was P60,000. They agreed to share profits and losses as follows: Dan Ken Salaries Php28,000 Php40,000 Interest on original capital 10% 10% Balance 30% 70% _______ If the losses for the year were P20,000, what share of the loss would Ken receive? a.P2,600 c. ( P2,600) b.(P22,600) d. P5,200
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The capital balances of the partners are presented to you before the retirement of X: X, P50,000; Y, P45,000; Z, P35,000. P/L ratio, equally. After the retirement of X, the capital balance of Z was P34,000. How much is the total capital after the retirement of X? A. P48,000 B. P80,000 C. P78,000 D. P52,000 The capital balances of the partners are presented to you before the retirement of Z: X, P60,000; Y, P55,000; Z, P45,000. P/L ratio, equally. After the retirement of Z, the capital balance of X was P57,500. How much is the capital of Y after the retirement of Z? A. P55,000 B. P57,500 C. P52,500 D. P115,000
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