Accounting for Special Transactions - PARTNERSHIP OPERATIONS 1. Partners A and B share in profts and losses on a 70;30 ratio after salaries of P80,000 for A and P40,000 for B. The business earned profit of P180,000 before deduction for the salaries. Requirements: a. Compute for the partner's respective share in the profit. b. Provide the journal entries (the salaries are withdrawn periodically) 2. A and B's partnership agreement provided for annual salary allowances of P160,000 for and P80,000 for B. Profits are shared equally, while losses on a 70;30 ratio. The partnership earned profit of P200,000. Requirement: Compute for the respective shares of the partners in the profit.
Accounting for Special Transactions - PARTNERSHIP OPERATIONS 1. Partners A and B share in profts and losses on a 70;30 ratio after salaries of P80,000 for A and P40,000 for B. The business earned profit of P180,000 before deduction for the salaries. Requirements: a. Compute for the partner's respective share in the profit. b. Provide the journal entries (the salaries are withdrawn periodically) 2. A and B's partnership agreement provided for annual salary allowances of P160,000 for and P80,000 for B. Profits are shared equally, while losses on a 70;30 ratio. The partnership earned profit of P200,000. Requirement: Compute for the respective shares of the partners in the profit.
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PB: The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a...
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Accounting for Special Transactions -
1. Partners A and B share in profts and losses on a 70;30 ratio after salaries of P80,000 for A and P40,000 for B. The business earned profit of P180,000 before deduction for the salaries.
Requirements:
a. Compute for the partner's respective share in the profit.
b. Provide the
2. A and B's partnership agreement provided for annual salary allowances of P160,000 for and P80,000 for B. Profits are shared equally, while losses on a 70;30 ratio. The partnership earned profit of P200,000.
Requirement:
Compute for the respective shares of the partners in the profit.
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