A, B and C are partners in the accounting firm. Their capital account balances at year end were: A - P 90,000 B- P 110,000 C- P 50,000. They share profits and losses in a 4:4:2 ratio, after the following special terms: 1. Partner C is to receive a bonus of 10% of the net income after bonus. 2. Interest of 10% shall be paid on that portion of a partner's capital in excess of P 100,000 3. Salaries of P 10,000 and P 12,000 shall be paid to partners A and C, respectively. Assuming a net income of P 44,000 for the year, the total profit share of partner C would be:
A, B and C are partners in the accounting firm. Their capital account balances at year end were: A - P 90,000 B- P 110,000 C- P 50,000. They share profits and losses in a 4:4:2 ratio, after the following special terms: 1. Partner C is to receive a bonus of 10% of the net income after bonus. 2. Interest of 10% shall be paid on that portion of a partner's capital in excess of P 100,000 3. Salaries of P 10,000 and P 12,000 shall be paid to partners A and C, respectively. Assuming a net income of P 44,000 for the year, the total profit share of partner C would be:
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 3PA
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A, B and C are partners in the accounting firm. Their capital account balances at year end were:
A - P 90,000
B- P 110,000
C- P 50,000.
They share
1. Partner C is to receive a bonus of 10% of the net income after bonus.
2. Interest of 10% shall be paid on that portion of a partner's capital in excess of P 100,000
3. Salaries of P 10,000 and P 12,000 shall be paid to partners A and C, respectively.
Assuming a net income of P 44,000 for the year, the total profit share of partner C would be:
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