On January 1, 20xx, A, B, C and D formed 5G Trading Co., a partnership with capital 4. contributions as follows: A, P500,000; B, P250,000; C, P250,000; and D, P200,000. The partnership contract provided that each partner shall receive a 5% interest on contributed capital, and that A and B shall receive salaries of P50,000 and P30,000 respectively. The contract also provided that C shall receive a minimum of P2,500 per annum, and Da minimum of P60,000 per annum, which is inclusive of amounts representing interest and share of remaining profits. The balance of the profit shall be distributed to A, B,C and D in a 3:3:2:2 ratio. What amount must be earned by the partnership, before any charge for interest and salaries, so that A may receive an aggregate of P125,000 including interest, salary and share of profit? a. P166,667 с. Р300,000 b. Р300,000 d. P323,333
On January 1, 20xx, A, B, C and D formed 5G Trading Co., a partnership with capital 4. contributions as follows: A, P500,000; B, P250,000; C, P250,000; and D, P200,000. The partnership contract provided that each partner shall receive a 5% interest on contributed capital, and that A and B shall receive salaries of P50,000 and P30,000 respectively. The contract also provided that C shall receive a minimum of P2,500 per annum, and Da minimum of P60,000 per annum, which is inclusive of amounts representing interest and share of remaining profits. The balance of the profit shall be distributed to A, B,C and D in a 3:3:2:2 ratio. What amount must be earned by the partnership, before any charge for interest and salaries, so that A may receive an aggregate of P125,000 including interest, salary and share of profit? a. P166,667 с. Р300,000 b. Р300,000 d. P323,333
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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Transcribed Image Text:On January 1, 20xx, A, B, C and D formed 5G Trading Co., a partnership with capital
contributions as follows: A, P500,000; B, P250,000; C, P250,000; and D, P200,000. The
4.
partnership contract provided that each partner shall receive a 5% interest on
contributed capital, and that A and B shall receive salaries of P50,000 and P30,000
respectively. The contract also provided that C shall receive a minimum of P2,500 per
annum, and Da minimum of P60,000 per annum, which is inclusive of amounts
representing interest and share of remaining profits. The balance of the profit shall be
distributed to A, B,C and D in a 3:3:2:2 ratio.
What amount must be earned by the partnership, before any charge for interest and
salaries, so that A may receive an aggregate of P125,000 including interest, salary and
share of profit?
a. P166,667
с. Р300,000
b. Р300,000
d. P323,333
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