6. A and B formed a Partnership on January 1, 2020. A contributed capital of P50,000, while B contributed capital of P30,000. The Partnership agreement provides for the following:Capital accounts are to be credited annually with interest at 5% of the beginning capital.Partner B is to be paid salary of P2,000 a month.Partner B is to receive a bonus of 10% based on the net income. The Partnership's income statement for the year ended is as follows:Revenues P101,000Expenses (including salary, interest, and bonus) 30,000 Net income 71,000 Determine the amount of bonus.

Partner A Interest = Partner A Capital * 5% = 50,000 * 5% = P 2,500 Partner B Interest = Partner B…

Answered: A and B formed a Partnership on January…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 3SEB

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6. A and B formed a Partnership on January 1, 2020. A contributed capital of P50,000, while B contributed capital of P30,000. The Partnership agreement provides for the following:

Capital accounts are to be credited annually with interest at 5% of the beginning capital.
Partner B is to be paid salary of P2,000 a month.
Partner B is to receive a bonus of 10% based on the net income.

The Partnership's income statement for the year ended is as follows:

Revenues	P101,000
Expenses (including salary, interest, and bonus)	30,000
Net income	71,000

Determine the amount of bonus.

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