XYZ partnership formed its partnership on June 1, 20x1 with the following capital balances:                                           A, capital 60,000 B, capital 80,000 C, capital 100,000   The partners agreed that profits and losses be distributed as follows: Each partner is allocated an interest of 10% based on beginning capital Salary allowance to B of P20,000 per year. Any remaining profits and losses are allocated on a 3:3:4 ratio, respectively Each partner withdraw P5,000   Assuming the net income is P50,000. What is the capital balance of C at the end of the year?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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  1. XYZ partnership formed its partnership on June 1, 20x1 with the following capital balances:

                                         

A, capital

60,000

B, capital

80,000

C, capital

100,000

 

The partners agreed that profits and losses be distributed as follows:

  • Each partner is allocated an interest of 10% based on beginning capital
  • Salary allowance to B of P20,000 per year.
  • Any remaining profits and losses are allocated on a 3:3:4 ratio, respectively
  • Each partner withdraw P5,000

 

Assuming the net income is P50,000. What is the capital balance of C at the end of the year?

 

THE ANSWER IS (110,567) I JUST NEED THE COMPUTATION TO UNDERSTAND.

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