The partnership of Alvin, Benny and Celia provides that profits are to be divided as follows: Alvin is to receive a salary of P20,000 for managing the partnership business. Partners are to receive 10% interest on average capital balances. Remaining profits are to be divided 30%, 30% and 40% to Alvin, Benny and Celia, respectively. Alvin had a capital balance of P120,000 at January 1, 2021 and had temporary drawings of P16,000 during the year ended December 31, 2021. Benny's capital balance on January 1, 2021 was P180,000 and he invested an additional P60,000 on September 1, 2021. Celia's beginning capital balance was P220,000 and she withdrew P20,000 on July 1 but invested an additional P40,000 on October 1, 2021. Assuming that the partnership had a net income of P30,000, determine the share of: Alvin Benny Celia in net income
The partnership of Alvin, Benny and Celia provides that profits are to be divided as follows: Alvin is to receive a salary of P20,000 for managing the partnership business. Partners are to receive 10% interest on average capital balances. Remaining profits are to be divided 30%, 30% and 40% to Alvin, Benny and Celia, respectively. Alvin had a capital balance of P120,000 at January 1, 2021 and had temporary drawings of P16,000 during the year ended December 31, 2021. Benny's capital balance on January 1, 2021 was P180,000 and he invested an additional P60,000 on September 1, 2021. Celia's beginning capital balance was P220,000 and she withdrew P20,000 on July 1 but invested an additional P40,000 on October 1, 2021. Assuming that the partnership had a net income of P30,000, determine the share of: Alvin Benny Celia in net income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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#4123
The partnership of Alvin, Benny and Celia provides that profits are to be divided as
follows:
- Alvin is to receive a salary of P20,000 for managing the partnership business.
- Partners are to receive 10% interest on average capital balances.
- Remaining profits are to be divided 30%, 30% and 40% to Alvin, Benny and Celia, respectively.
Alvin had a capital balance of P120,000 at January 1, 2021 and had temporary drawings of P16,000 during the year ended December 31, 2021. Benny's capital balance on January 1, 2021 was P180,000 and he invested an additional P60,000 on September 1, 2021. Celia's beginning capital balance was P220,000 and she withdrew P20,000 on July 1 but invested an additional P40,000 on October 1, 2021.
Assuming that the partnership had a net income of P30,000, determine the share of:
- Alvin
- Benny
- Celia
in net income
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