On January 1, 2022, A and B formed a partnership by contributing P200,000 and P180,000 respectively. On April 1, Partner A invested additional P30,000 but withdrew P48,000 on October 31. B, on the other hand, withdrew P45,000 on June 1 but invested P25,000 on September 30. The partnership's operation for the year 2022 resulted in a profit of P98,000 to be divided using the average capital balances of the partners. Determine the capital balance to be used in profit allocation for Partner B.

On January 1, 2022, A and B formed a partnership by contributing P200,000 and P180,000 respectively. On April 1, Partner A invested additional P30,000 but withdrew P48,000 on October 31. B, on the other hand, withdrew P45,000 on June 1 but invested P25,000 on September 30. The partnership's operation for the year 2022 resulted in a profit of P98,000 to be divided using the average capital balances of the partners. Determine the capital balance to be used in profit allocation for Partner B.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 9E

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