On January 1, 2023, Psalm and Trisha formed PS Partnership. The articles of co-partnership provide shall be distributed accordingly: • 15% interest on average capital balance. P30,000 and P80,000 quarterly salary for Psalm and Trisha, respectively. The remainder shall be distributed in the ratio of 4:6 for Psalm and Trisha, respectively. The following transactions regarding the capital balance of the partners for year 2023 are provided: . January 1, 2023 investment March 31, 2023 investment July 30, 2023 withdrawal Psalm, Trisha, Capital Capital P1,200,000 P550,000 (300,000) 200,000
On January 1, 2023, Psalm and Trisha formed PS Partnership. The articles of co-partnership provide shall be distributed accordingly: • 15% interest on average capital balance. P30,000 and P80,000 quarterly salary for Psalm and Trisha, respectively. The remainder shall be distributed in the ratio of 4:6 for Psalm and Trisha, respectively. The following transactions regarding the capital balance of the partners for year 2023 are provided: . January 1, 2023 investment March 31, 2023 investment July 30, 2023 withdrawal Psalm, Trisha, Capital Capital P1,200,000 P550,000 (300,000) 200,000
Chapter21: Partnerships
Section: Chapter Questions
Problem 22CE
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Transcribed Image Text:On January 1, 2023, Psalm and Trisha formed PS Partnership. The articles of co-partnership provides that profit or loss
shall be distributed accordingly:
• 15% interest on average capital balance.
P30,000 and P80,000 quarterly salary for Psalm and Trisha, respectively.
. The remainder shall be distributed in the ratio of 4:6 for Psalm and Trisha, respectively.
The following transactions regarding the capital balance of the partners for year 2023 are provided:
.
January 1, 2023
investment
March 31, 2023
investment
July 30, 2023
withdrawal
September 30,
2023
withdrawal
November 1,
2023
investment
Psalm, Trisha,
Capital
Capital
P1,200,000 P550,000
(300,000)
800,000
200,000
(300,000)
The chief accountant of the partnership reported net income of P800,000 for year 2023.
What is the capital balance of Psalm on December 31, 2023?
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