Question
6. Geo, Glenn and Kelvin has the following profit and loss sharing arrangement: - Salaries of P30,000, P24,000 and P18,000 are to be allowed
6. Geo, Glenn and Kelvin has the following profit and loss sharing arrangement: - Salaries of P30,000, P24,000 and P18,000 are to be allowed to the partners. - Interest at 10% of average capital shall be given to each partner. -The remainder shall be divided 50:30:20 among the partners, respectively. The beginning capital balances of Geo, Glenn and Kelvin are P100,000, P150,000 and P200,000, respectively. The following changes in capital balances occurred during the year: a. March 31 - Geo invested an additional 50,000 into the partnership. b. July 1 - Glenn invested P30,000 into the partnership. c. September 30 - Kelvin withdrew 80,000 from the partnership. At the end of the year, Glenn was allocated a total of P75,000 as his share in the partnership income. What is the share of Kelvin in the net income? A. P23,000 B. P55,000 C. P41,000 D. P67,000
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