Chris and Paul are partners with the following capital transactions during 2020: Chris Paul Debit Credit Debit Credit P 135,000 P 140,000 Balance, January 1, February 28 P 40,000 March 31 60,000 April 30 80,000 June 30 P 50,000 August 31 September 30 70,000 20,000 October 31 20,000 The Income Summary account has a credit balance of P510,000. Interest on average capital at 9 percent, salaries of P60,000 and P100,000 to Chris and Paul, respectively, a bonus to Chris of 25 percent of net income after interest and salaries but before the bonus, and the balance equally. REQUIREMENTS: Compute the total share of Chris in the partnerships' net income.
Chris and Paul are partners with the following capital transactions during 2020: Chris Paul Debit Credit Debit Credit P 135,000 P 140,000 Balance, January 1, February 28 P 40,000 March 31 60,000 April 30 80,000 June 30 P 50,000 August 31 September 30 70,000 20,000 October 31 20,000 The Income Summary account has a credit balance of P510,000. Interest on average capital at 9 percent, salaries of P60,000 and P100,000 to Chris and Paul, respectively, a bonus to Chris of 25 percent of net income after interest and salaries but before the bonus, and the balance equally. REQUIREMENTS: Compute the total share of Chris in the partnerships' net income.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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