Vicente has a 30% participation in partnership profits and losses. Vicente's capital account has a net decrease ofP120,000 during the calendar year 2020. During 2020, Vicente withdrew P260,000 (charged against his capital account) andcontributed property valued at P50,000 to the partnership.8) What was the profit of the partnership for year 2020?On January 1, 2020, Palma and Suarez decided to form a partnership. At the end of the year, the partnership made a profitof P120,000. The capital accounts of the partnership showed the following transactions:Palma, CapitalР 50,00050,000Suarez, CapitalApr. 1Sept. 1Jan. 1 P240,000100,00050,00040,000Sept. 1 P 30,00050,000Jan. 1 P225,00045,00030,000June 1Dec. 1Oct. 1Aug. 1Oct. 1Dec. 1Assuming that an interest of 20% per annum is given on average capital and the balance of the profits is allocated in a ratio of 6:4between Palma and Suarez, respectively.Required:9)Compute the interest to be given to Palma and Suarez, respectively.

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Vicente has a 30% participation in partnership profits and losses. Vicente's capital account has a net decrease of P120,000 during the calendar year 2020. During 2020, Vicente withdrew P260,000 (charged against his capital account) and contributed property valued at P50,000 to the partnership. 8) What was the profit of the partnership for year 2020?

Vicente has a 30% participation in partnership profits and losses. Vicente's capital account has a net decrease of P120,000 during the calendar year 2020. During 2020, Vicente withdrew P260,000 (charged against his capital account) and contributed property valued at P50,000 to the partnership. 8) What was the profit of the partnership for year 2020?

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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