YES Partnership started operations on January 2, 2016 with the following capital balances: Yves P88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions: Yves will be given an annual salary of P16,000 and Serge P8,000 All partners will be given 10% interest on beginning capital balances every year The balance of the profit, or the loss, will be divided on a 2:3:5 to Yves, Ernest and Serge, respectively. Each partner is allowed to withdraw up to P8,000 every year In 2016, partnership operations resulted in a net loss of P16,000, while in 2017, it was a net profit of P32,000. All partners withdrew the maximum amount of P8,000 each year. Required: Compute for the following:
YES Partnership started operations on January 2, 2016 with the following capital balances: Yves P88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions: Yves will be given an annual salary of P16,000 and Serge P8,000 All partners will be given 10% interest on beginning capital balances every year The balance of the profit, or the loss, will be divided on a 2:3:5 to Yves, Ernest and Serge, respectively. Each partner is allowed to withdraw up to P8,000 every year In 2016, partnership operations resulted in a net loss of P16,000, while in 2017, it was a net profit of P32,000. All partners withdrew the maximum amount of P8,000 each year. Required: Compute for the following:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
YES
Yves P88,000
Ernest 64,000
Serge 90,000
Their
- Yves will be given an annual salary of P16,000 and Serge P8,000
- All partners will be given 10% interest on beginning capital balances every year
- The balance of the profit, or the loss, will be divided on a 2:3:5 to Yves, Ernest and Serge, respectively.
- Each partner is allowed to withdraw up to P8,000 every year
In 2016, partnership operations resulted in a net loss of P16,000, while in 2017, it was a net profit of P32,000. All partners withdrew the maximum amount of P8,000 each year.
Required: Compute for the following:
- Share in Net Profit or Net Loss for 2016 and 2017
- Ending Capital of each partner for 2016 and 2017
Transcribed Image Text:YES Partnership started operations on January 2, 2016 with the following capital
balances:
Yves
P88,000
Ernest
64,000
Serge
90,000
Their profit and loss agreement has the following provisions:
• Yves will be given an annual salary of P16,000 and Serge P8,000
• All partners will be given 10% interest on beginning capital balances every year
• The balance of the profit, or the loss, will be divided on a 2:3:5 to Yves, Ernest and
Serge, respectively.
• Each partner is allowed to withdraw up to P8,000 every year
In 2016, partnership operations resulted in a net loss of P16,000, while in 2017, it was
a net profit of P32,000. All partners withdrew the maximum amount of P8,000 each
year.
Required: Compute for the following:
1. Share in Net Profit or Net Loss for 2016 and 2017
2. Ending Capital of each partner for 2016 and 2017
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