Exercise 3-5. Distribution of net income by providing salaries, interest and bonus The beginning capital contributions of the partners in the newly formed partnership are as follows: Clara, P250,000, Mara, P150,000; and Angela, P200,000. In its first nine months of operation, the partnership of Clara, Mara and Angela made a net income of P290,000, before providing for 20% annual interest on beginning capital balances and monthly salary allowance of P10,000, P5,000, and P2,500, respectively. Mara is entitled to a 25% bonus on net income after interest and salaries. Any remainder will be shared by the partners in the ratio of 5:3:2. Required: Compute for the share of Clara, Mara and Angela in the partnership profits.
Exercise 3-5. Distribution of net income by providing salaries, interest and bonus The beginning capital contributions of the partners in the newly formed partnership are as follows: Clara, P250,000, Mara, P150,000; and Angela, P200,000. In its first nine months of operation, the partnership of Clara, Mara and Angela made a net income of P290,000, before providing for 20% annual interest on beginning capital balances and monthly salary allowance of P10,000, P5,000, and P2,500, respectively. Mara is entitled to a 25% bonus on net income after interest and salaries. Any remainder will be shared by the partners in the ratio of 5:3:2. Required: Compute for the share of Clara, Mara and Angela in the partnership profits.
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 2SEB
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typewritt3n and not image please in a table format like in g00gle sh3ets/excel.
Transcribed Image Text:Exercise 3-5.
Distribution of net income by providing
salaries, interest and bonus
The beginning capital contributions of the partners in the newly
formed partnership are as follows: Clara, P250,000; Mara,
P150,000; and Angela, P200,000. In its first nine months of
operation, the partnership of Clara, Mara and Angela made a net
income of P290,000, before providing for 20% annual interest
on beginning capital balances and monthly salary allowance of
P10,000, P5,000, and P2,500, respectively. Mara is entitled to a
25% bonus on net income after interest and salaries. Any
remainder will be shared by the partners in the ratio of 5:3:2.
Required:
Compute for the share of Clara, Mara and Angela in the
partnership profits.
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