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Assuming the partnership incurred a loss of P400,000 in 2020. Since they are both active in partnership's affair, each one will receive a P50,000 salary allowance per year Tasks: determine the new partners' capital after the distribution of profit and loss.

Assuming the partnership incurred a loss of P400,000 in 2020. Since they are both active in partnership's affair, each one will receive a P50,000 salary allowance per year Tasks: determine the new partners' capital after the distribution of profit and loss.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assuming the partnership incurred a loss of P400,000 in 2020. Since they are both active in partnership's affair, each one will receive a P50,000 salary
allowance per year

Tasks:

determine the new partners' capital after the distribution of profit and loss.

Bosing and Baste are partners. Their partnership agreement are as follows: 1 they will give a 20% interest on their beginning capital. 2 since they are both active in the partnership's affair, each one will receive salary allowance per year. 3 since Bosing is the managing partner, he will receive a 20% bonus on net income after deducting salary allowance, interest on beginning capital and after bonus ; and 4 the balance in the ratio of 70:30 for Bosing and Baste Baste, Capital |200,000.0 Bosing Capital Bosing, Drawing Baste, Drawing Jan 1 400,000.00 150,000 50,000 Apr 1 50,000.00 Jun 1 100,000.00 100,000.0 Sept 1 50,000.00 50,000.00
Transcribed Image Text:Bosing and Baste are partners. Their partnership agreement are as follows: 1 they will give a 20% interest on their beginning capital. 2 since they are both active in the partnership's affair, each one will receive salary allowance per year. 3 since Bosing is the managing partner, he will receive a 20% bonus on net income after deducting salary allowance, interest on beginning capital and after bonus ; and 4 the balance in the ratio of 70:30 for Bosing and Baste Baste, Capital |200,000.0 Bosing Capital Bosing, Drawing Baste, Drawing Jan 1 400,000.00 150,000 50,000 Apr 1 50,000.00 Jun 1 100,000.00 100,000.0 Sept 1 50,000.00 50,000.00
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