Question
Simon and Jason formed a partnership. The partnership agreement stipulates the following: (a) Annual salary allowance of P50,000 for Simon. (b) Interest of 10% on
Simon and Jason formed a partnership. The partnership agreement stipulates the following:
(a) Annual salary allowance of P50,000 for Simon.
(b) Interest of 10% on the weighted average capital balance of Jason.
(c) The partners share profits and losses on a 60:40 ratio.
During the period, the partnership earned profit of P100,000.
The movements in Jasons capital account are as follows:
| Jason, Capital | |||
| July 1 | 30,000 | 60,000 | Beg. |
|
|
| 20,000 | April 1 |
|
|
| 40,000 | Sept. 30 |
|
|
| 10,000 | Dec. 31 |
Required:
How much is the average capital balance of Jason?
How much is the share of Simon in the partnership profits?
How much is the share of Jason in the partnership profits?
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Funding And Financing Transport Infrastructure
Authors: Athena Roumboutsos, Hans Voordijk, Aristeidis Pantelias
1st Edition
0367735792, 9780367735791
