6. The partnership agreement of A and B states the following: Monthly salary of P10,000 for A. 20% bonus to A, before deductions for salary, interest, and bonus. 10% interest on the weighted average capital of B. Balance is shared equally. B's weighted average capital balance is P200,000. The partnership reported profit of P60,000 for the year, net of salaries, bonus and interest. Requirement: Compute for B's share in the profit.
6. The partnership agreement of A and B states the following: Monthly salary of P10,000 for A. 20% bonus to A, before deductions for salary, interest, and bonus. 10% interest on the weighted average capital of B. Balance is shared equally. B's weighted average capital balance is P200,000. The partnership reported profit of P60,000 for the year, net of salaries, bonus and interest. Requirement: Compute for B's share in the profit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:6. The partnership agreement of A and B states the following:
Monthly salary of P10,000 for A.
20% bonus to A, before deductions for salary, interest, and
and
bonus.
10% interest on the weighted average capital of B.
Balance is shared equally.
in
B's weighted average capital balance is P200,000. The partnership
ual
reported profit of P60,000 for the year, net of salaries, bonus and
he
interest.
is
ed
Requirement: Compute for B's share in the profit.
ce
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