X. Y. and Z formed a partnership on Inauary 1, 2021, and contributed P150.000; P200,000 P300.000, respectively. Their articles of co-partnership provide that the operating income be shared among partners as follows as salary, P24.000 for XP18.000 for Y. and P12,000 for Z interest of 12% on the average capital during 2021 of the three partners and the remainder in the ratio of 424 respectively. The operating income for the year-end December 31, 2021 amounted to P200,000 X contributed additional capital of P30.000 on July 1, and made a drawing of P10.000 on October 1. Y contributed additional capital of P20.000 on August 1 and made a drawing of P10.000 on October 1: and Z made a drawing of P30.000 on November 1, 2021. How much is the capital balance at the end of partner Y?
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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