How much is the share of Lorna share in the net income? * P89,235.00 P90,382.50 P90,735.00 P91,350.00 answer not given On July 1, 2020, Lorna and Verna decided to form LOVE partnership whichearned net income of P180,000 at the end of the year. The capital accountsof the partnership show the following transaction.Lorna, CapitalDebitCreditVerna, CapitalCreditDebitJuly 1September 1 P6,000P80,000P50,000October 110,00010,0009,000December 1Partners agreed to give interest of 12% per annum on average capital andthe balance of profits to be divided equally.

Answer: Concept: The net income is distributed in following manner: 1. Firstly, interest @12% is…

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How much is the share of Lorna share in the net income? * P89,235.00 P90,382.50 P90,735.00

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...

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Question

How much is the share of Lorna share in the net income? *

P89,235.00

P90,382.50

P90,735.00

P91,350.00

answer not given

On July 1, 2020, Lorna and Verna decided to form LOVE partnership which
earned net income of P180,000 at the end of the year. The capital accounts
of the partnership show the following transaction.
Lorna, Capital
Debit
Credit
Verna, Capital
Credit
Debit
July 1
September 1 P6,000
P80,000
P50,000
October 1
10,000
10,000
9,000
December 1
Partners agreed to give interest of 12% per annum on average capital and
the balance of profits to be divided equally.

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