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6. Gan and Da are partners who share profits and losses in the ratio of 60% : 40%, respectively. Gan’s salary is P120,000 and Da’s is P60,000. The partners are also paid

6. Gan and Da are partners who share profits and losses in the ratio of 60% : 40%, respectively. Gan’s salary is P120,000 and Da’s is P60,000. The partners are also paid

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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6. Gan and Da are partners who share profits and losses in the ratio of 60% : 40%,

respectively. Gan’s salary is P120,000 and Da’s is P60,000. The partners are also paid
interest on their average capital balances. In 2015, Gan received P60,000 of interest and
Da, P24,000. The profit and loss allocation is determined after deductions for the salary
and interest payments. If Da’s share in the residual income (income after deducting
salaries and interest) was P120,000 in 2015, what was the total partnership income?

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