Reference no: EM132830565

Formed a partnership on January 1, 2021, and contributed P150,000, P200,000, and P250,000 respectively. Their articles of co-partnership provide that the operating income be shared among the partners as follows: as salary, P24,000 for , P18,000 for , and P12,000 for ; interest of 12% on the average capital during 2021 of the three partners; bonus to equivalent to 10% of the ne t income after salaries but before interest on capital and remainder in the ratio of 4:2:4, respectively.

The operating income for the year-end December 31, 2021 amounted to P200,000. SAM contributed additional capital of P30,000 on July 1, and made a drawing of P10,000 on October 1; GYUP contributed additional capital of P20,000 on August 1, and made a drawing of P10,000 on October 1; and SAL made a drawing of P30,000 on November 1.

Requirements:

Problem 1. Create a table showing for the determination of average capital of each partners.

Problem 2. Provide for the solution on the computation of the Bonus.

Problem 3. Prepare the table for the allocation of the net Income among partners.

Problem 4. Determine the capital balances of Partners after the allocation of Net Income.