On January 1, 20x4, the dental partnership of LL, CC and RR was formed when the partners contributed P20, 000, P60, 000 and P50,000, respectively, Over the next three years, the business reported net...


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On January 1, 20x4, the dental partnership of LL, CC and RR was formed when the<br>partners contributed P20, 000, P60, 000 and P50,000, respectively, Over the next<br>three years, the business reported net income and (loss) as follows: 20x4, P(30, 000);<br>20x5, P20, 000 and 20x6, P40, 000. During this period, each partner withdrew cash of<br>P10, 000 per year. RR invested an additional P12,000 in cash on February 9, 20x5. At<br>the time that the partnership was created the three partners agreed to allocate all<br>profits and losses according to a specified plan written as follows:<br>• Each partner is entitled to interest computed at the rate of 12% per year based on<br>the individual capital balances at the beginning of that year.<br>Because of prior work experience, LL is entitled to an annual salary allowance of<br>P12, 000 and Cc is credited with P8, 000 per year.<br>Any remaining profit will be split as follows: LL, 20%; CC, 40%; and RR, 40%. If a<br>loss remains, the balance will be allocated: LL, 30%; CC, 50% and RR, 20%.<br>W.<br>Determine the ending capital balance for Partner LL as the end of 20X4<br>

Extracted text: On January 1, 20x4, the dental partnership of LL, CC and RR was formed when the partners contributed P20, 000, P60, 000 and P50,000, respectively, Over the next three years, the business reported net income and (loss) as follows: 20x4, P(30, 000); 20x5, P20, 000 and 20x6, P40, 000. During this period, each partner withdrew cash of P10, 000 per year. RR invested an additional P12,000 in cash on February 9, 20x5. At the time that the partnership was created the three partners agreed to allocate all profits and losses according to a specified plan written as follows: • Each partner is entitled to interest computed at the rate of 12% per year based on the individual capital balances at the beginning of that year. Because of prior work experience, LL is entitled to an annual salary allowance of P12, 000 and Cc is credited with P8, 000 per year. Any remaining profit will be split as follows: LL, 20%; CC, 40%; and RR, 40%. If a loss remains, the balance will be allocated: LL, 30%; CC, 50% and RR, 20%. W. Determine the ending capital balance for Partner LL as the end of 20X4

Jun 11, 2022
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