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1 Partners Manipon and Naranja have a profit and loss agreement with the following provisions: salaries of P20,000 and P25,000 for Manipon and Naranja, respectively; a bonus to Manipon of 10% of net income after bonus; and interest of 20% on average capital balances of P40,000 and P50,000 for Manipon and Naranja, respectively. Any remainder is split equally. If the partnership had net income of P88,000, how much should be allocated to Partner Manipon? a. P36,000 b. P44,500 c. P50,000 d. P43,500

1 Partners Manipon and Naranja have a profit and loss agreement with the following provisions: salaries of P20,000 and P25,000 for Manipon and Naranja, respectively; a bonus to Manipon of 10% of net income after bonus; and interest of 20% on average capital balances of P40,000 and P50,000 for Manipon and Naranja, respectively. Any remainder is split equally. If the partnership had net income of P88,000, how much should be allocated to Partner Manipon? a. P36,000 b. P44,500 c. P50,000 d. P43,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Partners Manipon and Naranja have a profit and loss agreement with the following provisions: salaries of P20,000 and P25,000 for Manipon and Naranja, respectively; a bonus to Manipon of 10% of net income after bonus; and interest of 20% on average capital balances of P40,000 and P50,000 for Manipon and Naranja, respectively. Any remainder is split equally. If the partnership had net income of P88,000, how much should be allocated to Partner Manipon? a. P36,000 b. P44,500 C. P50,000 d. P43,500
Transcribed Image Text:Partners Manipon and Naranja have a profit and loss agreement with the following provisions: salaries of P20,000 and P25,000 for Manipon and Naranja, respectively; a bonus to Manipon of 10% of net income after bonus; and interest of 20% on average capital balances of P40,000 and P50,000 for Manipon and Naranja, respectively. Any remainder is split equally. If the partnership had net income of P88,000, how much should be allocated to Partner Manipon? a. P36,000 b. P44,500 C. P50,000 d. P43,500
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