On January 1, 2031, A, B and C formed ABC Partnership with total agreed capitalization of P2,000,000. The capital interest ratio of the ABC Partnership is 5:1:4 while the profit or loss ratio is 3:2:5, respectively for A, B and C. During 2031, A and B made additional investments of P400,000 and P1,000,000, respectively. At the end of 2031, B and C made drawings of P600,000 and P200,000, respectively. On December 31, 2031, the capital balance of B is reported at P400,000. 7. What is the net income or net loss of ABC Partnership for the year ended December 31, 2031? a. (P1,000,000) b. (P2,000,000) c. P1,600,000 d. P2,400,000 8. What is the capital balance of A on December 31, 2031? a. P900,000 b. P700,000 c. P1,100,000 d. P800,000 9. What is the capital balance of C on December 31, 2031? a. P300,000 b. P100,000 c. P400,000 d. P500,000
On January 1, 2031, A, B and C formed ABC
7. What is the net income or net loss of ABC Partnership for the year ended December 31,
2031?
a. (P1,000,000)
b. (P2,000,000)
c. P1,600,000
d. P2,400,000
8. What is the capital balance of A on December 31, 2031?
a. P900,000
b. P700,000
c. P1,100,000
d. P800,000
9. What is the capital balance of C on December 31, 2031?
a. P300,000
b. P100,000
c. P400,000
d. P500,000
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