The partnership of Maria, Clara, and Rita was formed on January 2, 2013. The original investments were as follows: Maria P80,000 Clara 120,000 Rita 180,000 According to the partnership agreement, net income or loss will be divided among the respective partners as follows: 1. Salaries of P12,000 for Maria, P10,000 for Clara, and P8,000 for Rita. 2. Interest of 8 percent on the average capital balances of Maria, Clara and Rita during the year. 3. Remainder divided equally. Additional information. 1 Net income of the partnership for the year ended December 31, 2013. was P70,000. 2 Maria invested an additional P20,000 in the partnership on July 1, 2013. 3 Rita withdrew P30,000 from the partnership October 1, 2013 4. Maria, Clara, and Rita made regular drawings against shares of net income during the year of P10,000 each.

The partnership of Maria, Clara, and Rita was formed on January 2, 2013. The original investments were as follows: Maria P80,000 Clara 120,000 Rita 180,000 According to the partnership agreement, net income or loss will be divided among the respective partners as follows: 1. Salaries of P12,000 for Maria, P10,000 for Clara, and P8,000 for Rita. 2. Interest of 8 percent on the average capital balances of Maria, Clara and Rita during the year. 3. Remainder divided equally. Additional information. 1 Net income of the partnership for the year ended December 31, 2013. was P70,000. 2 Maria invested an additional P20,000 in the partnership on July 1, 2013. 3 Rita withdrew P30,000 from the partnership October 1, 2013 4. Maria, Clara, and Rita made regular drawings against shares of net income during the year of P10,000 each.

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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