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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
June 30
80,000
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.
Transcribed Image Text: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 June 30 80,000 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.
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