6. The partnership agreement of A and B states the following: Monthly salary of P10,000 for A. 20% bonus to A, before deductions for salary, interest, and bonus. 10% interest on the weighted average capital of B. Balance is shared equally. B's weighted average capital balance is P200,000. The partnership reported profit of P60,000 for the year, net of salaries, bonus and interest. Requirement: Compute for B's share in the profit.
6. The partnership agreement of A and B states the following: Monthly salary of P10,000 for A. 20% bonus to A, before deductions for salary, interest, and bonus. 10% interest on the weighted average capital of B. Balance is shared equally. B's weighted average capital balance is P200,000. The partnership reported profit of P60,000 for the year, net of salaries, bonus and interest. Requirement: Compute for B's share in the profit.
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
Related questions
Question
Provide complete solution.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 4 images
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT