D, E and F agreed to share profit and losses as follows: • Salaries of P50,000, P40,000 and P20,000 to D, E and F, respectively • First P100,000 of profits after salaries, 20% bonus to D • Excess profits after salaries and the bonus to D above P100,000, 10% bonus to E • Residual profits or loss to F The partnership made P250,000 net profit. How much is E's profit sharing? Show your solution. a. P45,000 b. P43,200 c. P42,000 d. P41,200
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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