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What is the balance of D's capital account at the end of the second year?

What is the balance of D's capital account at the end of the second year?

FINANCIAL ACCOUNTING
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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Question: What is the balance of D's capital account at the end of the second year?

D. CD partnership begins its first year of operations with the following capital balances: C, Capital, P224,0003; D, Capital, P112,000. According to the partnership agreement, ali profits will be divided as follows: C and D will be allowed salaries of P268,800 and P134,400, respectively. The partners will be allowed with interest equal to 10% of the beginning capital balances C will be allowed a bonus of 10% of the net income after bonus. The 70
Transcribed Image Text:D. CD partnership begins its first year of operations with the following capital balances: C, Capital, P224,0003; D, Capital, P112,000. According to the partnership agreement, ali profits will be divided as follows: C and D will be allowed salaries of P268,800 and P134,400, respectively. The partners will be allowed with interest equal to 10% of the beginning capital balances C will be allowed a bonus of 10% of the net income after bonus. The 70
Chapter 2 Partnership Operations remainder will be divided as follows: on the basis of the beginning capital for the first year and equally for the subsequent years. Each partner is allowed to withdraw up to P11,200 per year. In the first year of operations, the income summary has a debit balance of P16,800 and a credit balance of P61,600 in the second year of operations. withdraws the maximum amount from the business each period. Assume that each partner 4. What is the balance of D's capital account at the end of the second year?
Transcribed Image Text:Chapter 2 Partnership Operations remainder will be divided as follows: on the basis of the beginning capital for the first year and equally for the subsequent years. Each partner is allowed to withdraw up to P11,200 per year. In the first year of operations, the income summary has a debit balance of P16,800 and a credit balance of P61,600 in the second year of operations. withdraws the maximum amount from the business each period. Assume that each partner 4. What is the balance of D's capital account at the end of the second year?
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