given 10% interest on beginning capital balances every year - The balance of the profit, or the loss, will be divided on a 2:5:3 to Yves, Ernest and Serge, respectively. In 2016, partnership operations resulted in a net loss of P16,000, while in
given 10% interest on beginning capital balances every year - The balance of the profit, or the loss, will be divided on a 2:5:3 to Yves, Ernest and Serge, respectively. In 2016, partnership operations resulted in a net loss of P16,000, while in
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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YES Partnership started operations on January 2, 2016 with the following capital balances:
Yves P88,000
Ernest 64,000
Serge 90,000
Their profit and loss agreement has the following provisions:
- Yves will be given an annual salary of P16,000 and Serge P8,000
- All partners will be given 10% interest on beginning capital balances every year
- The balance of the profit, or the loss, will be divided on a 2:5:3 to Yves, Ernest and Serge, respectively.
In 2016, partnership operations resulted in a net loss of P16,000, while in 2017, it was a net profit of P32,000. All partners withdrew the maximum amount of P8,000 each year.
Required:
Compute for the following:
1. Share in Net Profit or Net Loss for 2016 and 2017
2. Ending Capital of each partner for 2016 and 2017
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