Reference no: EM132949528
Problem - On January 1, 2015, DD, EE and FF decided to form a partnership. They have contributed 300,000, 300,000 and 400,000 respectively. At the end of the year 2019, the partnership made a net income of P300,000, the capital accounts of the partnership show the following transactions:
|
|
DD, Capital
|
EE, Capital
|
FF, Capital
|
|
|
Dr.
|
Cr.
|
Dr.
|
Cr.
|
Dr.
|
Cr.
|
|
Jan. 1
|
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P500,000
|
|
P250,000
|
|
P250,000
|
|
April 1
|
50,000
|
|
25,000
|
|
|
|
|
June 1
|
|
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50,000
|
|
|
|
|
August 1
|
|
100,000
|
|
|
|
150,000
|
|
Sept. 1
|
|
|
|
25,000
|
25,000
|
|
|
Oct. 1
|
|
50,000
|
50,000
|
|
|
|
|
Dec. 1
|
|
|
|
100,000
|
25,000
|
|
Required -
a. Compute for the share of each partner in the net profit of the partnership.
b. Compute for the capital balance of each of the partner at the end of the year under the following assumptions:
1. Equally
2. Original capital investment
3. Beginning capital balance
4. Ending capital balance
5. Average capital balance
6. 4:3:1