Problem 3 PROBLEM IIIEVIE and LEO are partners who agreed to share profits and losses in the following manner:EVIELEOMonthly SalariesP25,000P15,000Interest on average capital5%10%Bonus (based on NI after salaries and interest)10%Remainder50%50%During the current year, the partnership's result of operation was P275,000 profit before any deduction. Evie and Leo's average capitalbalances for the year are P600,000 and P300,000, respectively.1. Determine the share of Evie & Leo in the net income.

Answered: 1. Determine the share of Evie & Leo in…

Business

Accounting

1. Determine the share of Evie & Leo in the net income.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 12MC: Thandie and Marco are partners with capital balances of $60,000. They share profits and losses at...

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Problem 3

PROBLEM III
EVIE and LEO are partners who agreed to share profits and losses in the following manner:
EVIE
LEO
Monthly Salaries
P25,000
P15,000
Interest on average capital
5%
10%
Bonus (based on NI after salaries and interest)
10%
Remainder
50%
50%
During the current year, the partnership's result of operation was P275,000 profit before any deduction. Evie and Leo's average capital
balances for the year are P600,000 and P300,000, respectively.
1. Determine the share of Evie & Leo in the net income.

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