artners A and B have a profit and loss agreement with the following provisions: - Salaries of P30,000 and P45,000 for A and B, respectively; -The interest of 10% on average capital balances of P50,000 and P65,000 for A and B, respectively. -One-fourth of any remaining profits are allocated to A and the ratio to B. the partnership had a net income of 250,000, how much profit is allocated to Partner B?
artners A and B have a profit and loss agreement with the following provisions: - Salaries of P30,000 and P45,000 for A and B, respectively; -The interest of 10% on average capital balances of P50,000 and P65,000 for A and B, respectively. -One-fourth of any remaining profits are allocated to A and the ratio to B. the partnership had a net income of 250,000, how much profit is allocated to Partner B?
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...
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Transcribed Image Text:Partners A and B have a profit and loss agreement with the following provisions:
• Salaries of P30,000 and P45,000 for A and B, respectively;
The interest of 10% on average capital balances of P50,000 and P65,000 for A and B, respectively.
• One-fourth of any remaining profits are allocated to A and the ratio to B.
If the partnership had a net income of 250,000, how much profit is allocated to Partner B?
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