Costello & Summers are partners in a merchandising business. During 2014, they withdrew their salary allowances of P 34,000 & P 59,000 respectively. Bonus is given to Summers based on 20% of net income after salaries but before bonus and the remaining profit & loss equally by Costello & Summers. The partners’ capital accounts show the following: COSTELLO SUMMERS Beginning Balance P 85,000 P 67,000 Additional Investments 40,000 43,000 Withdrawal other than salary allowance 35,000 20,000 What is Summer’s capital if Costello’s capital after dividing net income is P 138,800?

Costello & Summers are partners in a merchandising business. During 2014, they withdrew their salary allowances of P 34,000 & P 59,000 respectively. Bonus is given to Summers based on 20% of net income after salaries but before bonus and the remaining profit & loss equally by Costello & Summers. The partners’ capital accounts show the following: COSTELLO SUMMERS Beginning Balance P 85,000 P 67,000 Additional Investments 40,000 43,000 Withdrawal other than salary allowance 35,000 20,000 What is Summer’s capital if Costello’s capital after dividing net income is P 138,800?

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 3PA

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