4. The partnership total Revenues for the year is P 1,200,000 and the Total Operating expenses is P400,000 The profit sharing agreement of Maria and Juana is based on their Capital contribution of P 500,000 and P 1.500.000 respectively Maria and Juana will receive 10% interest based on their capital contribution Maria will receive salary of P 20,000, and Juana will receive a bonus of P 10% of profit. What is the total amount received by Juana from the total profits including interest and bonus? a. 605,000 b. 375,000 c. 125,000 d. 195,000
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.
4. The
a. 605,000
b. 375,000
c. 125,000
d. 195,000
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