3.13 The partnership of Con and Rad started on June 1, 200C with an initial investment of P 200,000 and P 250,000, respectively. After one year of operations, the partnership reported a loss of P 8,000 after treating interest and salary allowances as expenses. In the partnership contract, the following provisions were indicated: * 10% interest on the original investment * Salaries of P 20,000 and P 48,000 for Con and Rad, respectively. * Con is allowed a bonus of 10% of the net income before interest, salary and bonus allowances. * Residual income: equally REQUIRED: Show how the profit or loss was distributed.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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3.13 The partnership of Con and Rad started on June 1, 200C with an
initial investment of P 200,000 and P 250,000, respectively. After
one year of operations, the partnership reported a loss of P 8,000
after treating interest and salary allowances as expenses. In the
partnership contract, the following provisions were indicated:
* 10% interest on the original investment
* Salaries of P 20,000 and P 48,000 for Con and Rad,
respectively.
* Con is allowed a bonus of 10% of the net income before
interest, salary and bonus allowances.
* Residual income: equally
REQUIRED: Show how the profit or loss was distributed.
Transcribed Image Text:3.13 The partnership of Con and Rad started on June 1, 200C with an initial investment of P 200,000 and P 250,000, respectively. After one year of operations, the partnership reported a loss of P 8,000 after treating interest and salary allowances as expenses. In the partnership contract, the following provisions were indicated: * 10% interest on the original investment * Salaries of P 20,000 and P 48,000 for Con and Rad, respectively. * Con is allowed a bonus of 10% of the net income before interest, salary and bonus allowances. * Residual income: equally REQUIRED: Show how the profit or loss was distributed.
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