of P500,000 and Y no capital contribution because she will manage the firm on a full time basis. Their partnership agreement to distribute profit were as follows: a) Interest at 5% shall be allowed on the beginning capital. b) Y is to be paid salaries of P10,000 per month. c) Y is to received a bonus of 30% of profit before deducting interest and salaries. d) Profits are to be divided between X and Y in the ratio of 6:4 There are no withdrawals by either partner during the year. The partnership statement of income contains the following information. Revenues P1,520,000 Expenses (including salary and interest) 820,000 Profit P
of P500,000 and Y no capital contribution because she will manage the firm on a full time basis. Their partnership agreement to distribute profit were as follows: a) Interest at 5% shall be allowed on the beginning capital. b) Y is to be paid salaries of P10,000 per month. c) Y is to received a bonus of 30% of profit before deducting interest and salaries. d) Profits are to be divided between X and Y in the ratio of 6:4 There are no withdrawals by either partner during the year. The partnership statement of income contains the following information. Revenues P1,520,000 Expenses (including salary and interest) 820,000 Profit P
Chapter21: Partnerships
Section: Chapter Questions
Problem 38P
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Question
.X and Y formed a partnership on January 1, 2020. X contributed net assets of P500,000 and Y no capital contribution because she will manage the firm on a full time basis. Their partnership agreement to distribute profit were as follows:
a) Interest at 5% shall be allowed on the beginning capital. b) Y is to be paid salaries of P10,000 per month.
c) Y is to received a bonus of 30% of profit before deducting interest and salaries. d) Profits are to be divided between X and Y in the ratio of 6:4
There are no withdrawals by either partner during the year. The partnership statement of income contains the following information.
Revenues P1,520,000
Expenses (including salary and interest) 820,000 Profit P 700,000
How much is the equity of X at year-end?
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT