Solution-Allocate the net income to the partners

Allocate the net income to the partners

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Reference no: EM132951656

Question - Cleary, Wasser, and Nolan formed a partnership on January 1, 2019, investments of P100,000, P150,000, and P200,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of P10,000 to Wasser, and (3) sharing remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for Wasser and Nolan. Net income was P150,000 in 2018 and P180,000 in 2019. Each partner withdrew P1,000 for personal use every month during 2018 and 2019.

Required -

1. Allocate the net income (loss) to the partners.

2. Prepare the Statement of Changes in Capital.

Reference no: EM132951656

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Allocate the net income to the partners

Reference no: EM132951656

Reference no: EM132951656

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