Homework Help is Here – Start Your Trial Now!
Business
Accounting
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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Provide complete solution.
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
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
Expert Solution
steps

Step by step

Solved in 3 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS