Exercise 3-6. Net Income distribution and computation of partner's capital balance On January 1, 2023, Psalm and Trisha formed PS Partnership. The articles of co-partnership provides that profit or loss shall be distributed accordingly: • 15% interest on average capital balance. ● P30,000 and P80,000 quarterly salary for Psalm and Trisha, respectively. • The remainder shall be distributed in the ratio of 4:6 for Psalm and Trisha, respectively.

Exercise 3-6. Net Income distribution and computation of partner's capital balance On January 1, 2023, Psalm and Trisha formed PS Partnership. The articles of co-partnership provides that profit or loss shall be distributed accordingly: • 15% interest on average capital balance. ● P30,000 and P80,000 quarterly salary for Psalm and Trisha, respectively. • The remainder shall be distributed in the ratio of 4:6 for Psalm and Trisha, respectively.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 2SEB

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