REQUIRED: Show how the net profit will be divided. 3.9 Bah, Lee and Wag have capital balances of P 15,000, P 10,000, and P 20,000, respectively. The partners agreed to the following distribution of profits: a. 10% interest on the capital balances b. Lee is entitled to a salary of P 6,000 c. Wag is guaranteed a minimum share of P 12,000. d. Remainder is to be divided 3:3:4 for Bah, Lee and Wag, respectively.

REQUIRED: Show how the net profit will be divided. 3.9 Bah, Lee and Wag have capital balances of P 15,000, P 10,000, and P 20,000, respectively. The partners agreed to the following distribution of profits: a. 10% interest on the capital balances b. Lee is entitled to a salary of P 6,000 c. Wag is guaranteed a minimum share of P 12,000. d. Remainder is to be divided 3:3:4 for Bah, Lee and Wag, respectively.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

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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