The partnership agreement of Kray, Lamb, and Mann provides for the division of net income as follows: 1. Lamb who manages the partnership, is to receive a salary of P550,000 per year. 2. Each partner is to be allowed interest at 10% on beginning capital. 3. Remaining profits are to be divided equally. During 2020, Kray invested additional P200,000 in the partnership. Lamb withdrew P250,000, and Mann withdrew P200,000. No other investments or withdrawals were made during 2020. On January 1, 2020 the capital. balances of Kray, P3,250,00, Lamb P3,750,000, and Mann P3,500,000. Total capital at year end was PP12,600,000. Required: Prepare a statement of partners' capital for the year ended December 31, 2020.
The partnership agreement of Kray, Lamb, and Mann provides for the division of net income as follows: 1. Lamb who manages the partnership, is to receive a salary of P550,000 per year. 2. Each partner is to be allowed interest at 10% on beginning capital. 3. Remaining profits are to be divided equally. During 2020, Kray invested additional P200,000 in the partnership. Lamb withdrew P250,000, and Mann withdrew P200,000. No other investments or withdrawals were made during 2020. On January 1, 2020 the capital. balances of Kray, P3,250,00, Lamb P3,750,000, and Mann P3,500,000. Total capital at year end was PP12,600,000. Required: Prepare a statement of partners' capital for the year ended December 31, 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The partnership agreement of Kray, Lamb, and Mann provides for the division of net income as follows:
1. Lamb who manages the partnership, is to receive a salary of P550,000 per year.
2. Each partner is to be allowed interest at 10% on beginning capital. 3. Remaining profits are to be divided equally.
During 2020, Kray invested additional P200,000 in the partnership. Lamb withdrew P250,000, and Mann withdrew P200,000. No other investments or withdrawals were made during 2020. On January 1, 2020 the capital.
balances of Kray, P3,250,00, Lamb P3,750,000, and Mann P3,500,000. Total capital at year end was PP12,600,000.
Required: Prepare a statement of partners' capital for the year ended December 31, 2020.
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