JJ and KK are partners who share profits and losses in the ratio of 60% and 40%, respectively. JJ’s salary is P60,000 and P30,000 for KK. The partners are also paid interest on their average capital balances. In 2015, JJ received P30,000 of interest and KK, P12,000. The profit and loss allocation is determined after deductions for the salary and interest payments. If KK’s share in the residual income was P60,000 in 2015, what was the total partnership income? A. 192,000 B. 345,000 C. 282,000 D. 387,000
JJ and KK are partners who share profits and losses in the ratio of 60% and 40%, respectively. JJ’s salary is P60,000 and P30,000 for KK. The partners are also paid interest on their average capital balances. In 2015, JJ received P30,000 of interest and KK, P12,000. The profit and loss allocation is determined after deductions for the salary and interest payments. If KK’s share in the residual income was P60,000 in 2015, what was the total partnership income? A. 192,000 B. 345,000 C. 282,000 D. 387,000
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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JJ and KK are partners who share profits and losses in the ratio of 60% and 40%, respectively. JJ’s salary is P60,000 and P30,000 for KK. The partners are also paid interest on their average capital balances. In 2015, JJ received P30,000 of interest and KK, P12,000. The profit and loss allocation is determined after deductions for the salary and interest payments. If KK’s share in the residual income was P60,000 in 2015, what was the total partnership income?
A. 192,000
B. 345,000
C. 282,000
D. 387,000
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