Answer to Question #286123 in Accounting for LJFG

Question

The following are taken from the accounting records of MNO Partnership.

December 31, 2023

Mario, Capital

₱58,960

Nancy, Capital

₱63,200

Olga, Capital

₱64,890

The partnership generated net income of ₱75,400 in 2024. According to the partnership contract,the profit and loss sharing ratios are as follows: Mario (25%), Nancy (37.5%), and Olga (37.5%)

The following were transactions with the partners during the year: 

• Mario made an additional contribution of ₱7,640. 

• Nancy withdrew ₱5,000 from the business. 

• Olga contributed ₱12,000 but withdrew ₱5,430

Prepare the partnership’s Statement of Changes in Equity.

Answer 1

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