The following are the capital account balances and profit and loss ratios of the partners in AB Partnership as of January 1, 20x2: Profit or loss ratios Capital accounts A, Capital B, Capital...


How much is the share of A in the 20x2 profit?


The following are the capital account balances and profit and loss ratios of the partners in AB<br>Partnership as of January 1, 20x2:<br>Profit or loss ratios<br>Capital accounts<br>A, Capital<br>B, Capital 1,000,000<br>600,000<br>40%<br>60%<br>1,600,000<br>On January 1, 20x2, C was admitted to the partnership when he acquired 20% interest in the<br>net assets and profits of the firm for a P400,000 investment. The bonus method was used to<br>record C's admission into the partnership.<br>For the year 20x2, the partnership earned profit of P4,000,000. However, it was discovered that<br>the following items were overstated:<br>20x1<br>20x2<br>Accrued income<br>80,000<br>100,000<br>Prepaid asset<br>Accrued expense<br>140,000<br>200,000<br>160,000<br>240,000<br>Unearned income<br>60,000<br>40,000<br>How much is the share of A in the 20x2 profit?<br>

Extracted text: The following are the capital account balances and profit and loss ratios of the partners in AB Partnership as of January 1, 20x2: Profit or loss ratios Capital accounts A, Capital B, Capital 1,000,000 600,000 40% 60% 1,600,000 On January 1, 20x2, C was admitted to the partnership when he acquired 20% interest in the net assets and profits of the firm for a P400,000 investment. The bonus method was used to record C's admission into the partnership. For the year 20x2, the partnership earned profit of P4,000,000. However, it was discovered that the following items were overstated: 20x1 20x2 Accrued income 80,000 100,000 Prepaid asset Accrued expense 140,000 200,000 160,000 240,000 Unearned income 60,000 40,000 How much is the share of A in the 20x2 profit?

Jun 03, 2022
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