17. The following information relates to XXX and YYY’s partners capital accounts for fiscal year ending June 30: XXXX YYY Balance, July 1 P86,400 P115,200 Add: Additional investment, January 1 38,400 19,200 Net Income for the year: Salaries 20,500 14,500 Interest 7,920 9,360 Bonus 3,720 Remainder 14,880 9,920 Total 171,820 168,180 Deduct: Drawings Monthly amounts 15,070 15,060 Additional drawings, June 30 2,400 403 Balance, June 30 154,350 152,717 Bonus is based on net income after salaries, interest and bonus. If the net income remains the same the following fiscal year, and there is no change in the partnership agreement nor any additional investment, how much will be YYY’s total share of the net income in the following year? A. P33,577 B. P33,780 C. P33,874 D. P33,696
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
17. The following information relates to XXX and YYY’s partners capital accounts for fiscal
year ending June 30:
XXXX YYY
| Balance, July 1 | P86,400 | P115,200 |
| Add: Additional investment, January 1 | 38,400 | 19,200 |
| Net Income for the year: | ||
| Salaries | 20,500 | 14,500 |
| Interest | 7,920 | 9,360 |
| Bonus | 3,720 | |
| Remainder | 14,880 | 9,920 |
| Total | 171,820 | 168,180 |
| Deduct: Drawings | ||
| Monthly amounts | 15,070 | 15,060 |
| Additional drawings, June 30 | 2,400 | 403 |
| Balance, June 30 | 154,350 | 152,717 |
Bonus is based on net income after salaries, interest and bonus. If the net income remains the same the following fiscal year, and there is no change in the
A. P33,577
B. P33,780
C. P33,874
D. P33,696
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