The partnership agreement stated the following profit distribution mechanics: A bonus of 10% of partnership profits after bonus is credited to Matt. Salaries of P35,000 and P20,000 were allocated to Jeff and Matt, respectively 10% interest on weighted average of capital balances. Remaining balance is to be split to 3:2 for Matt and Jeff, respectively. Matt and Jeff organized their partnership on January 1, 2021. The following were the partnership capital t-accounts: Assuming that there was a profit of P66,000, Determine the share of Matt. Determine the ending balance of Jeff’s capital after the allocation of the profit
The partnership agreement stated the following profit distribution mechanics: A bonus of 10% of partnership profits after bonus is credited to Matt. Salaries of P35,000 and P20,000 were allocated to Jeff and Matt, respectively 10% interest on weighted average of capital balances. Remaining balance is to be split to 3:2 for Matt and Jeff, respectively. Matt and Jeff organized their partnership on January 1, 2021. The following were the partnership capital t-accounts: Assuming that there was a profit of P66,000, Determine the share of Matt. Determine the ending balance of Jeff’s capital after the allocation of the profit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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#45
The partnership agreement stated the following profit distribution mechanics:
- A bonus of 10% of partnership profits after bonus is credited to Matt.
- Salaries of P35,000 and P20,000 were allocated to Jeff and Matt, respectively
- 10% interest on weighted average of capital balances.
- Remaining balance is to be split to 3:2 for Matt and Jeff, respectively.
Matt and Jeff organized their partnership on January 1, 2021. The following were the partnership capital t-accounts:
Assuming that there was a profit of P66,000,
- Determine the share of Matt.
- Determine the ending balance of Jeff’s capital after the allocation of the profit
Transcribed Image Text:Matt and Jeff organized their partnership on January 1, 2021 The following were the partnership capital
accounts
Mat, Capital
35,000
7/1
10,000
10/1
5,000
Jeft, Capital
10/1
10,000 1/1
25,000
11/1
6,000 V1
10,000
12/1
,000
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