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Love and Faith have been operating an accounting firm as partners for a number of years and at the beginning of 2016, their capital balances
- Love and Faith have been operating an accounting firm as partners for a number of years and at the beginning of 2016, their capital balances were P120,000 and P150,000, respectively. During 2016, Love invested an additional P20,000 on April 1 and withdrew P12,000 on August 30. Faith withdrew P24,000 on May 1 and invested P10,000 on November 1.
- In addition, Love and Faith withdrew their salary allowances of P36,000 and P42,000, respectively. At the year-end of 2016 total capital of the Love and Faith, the partnership was P360,000. Love and Faith share income after salary allowances in a ratio of 55:45.
- The share of Love on the 2016 net income is:
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ANS WER P 162 000 C AL C UL ATION Love s share of ...
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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
13th edition
134472144, 978-0134472140
