8. CC, PP, and AA, accountants, agree to form a partnership and to share profits in the ratio of 5:3:2. They also agreed that AA is to be allowed a salary of P28,000, and that PP is to be guaranteed P21,000 as his share of the profits. During the first year of operation, income from fees are P180,000, while expenses total P96,000. What amount of net income should be credited to each partner's capital account? a. cC, P28,000, PP, P16,800, AA, P11,200 O b. CC, P25,000, PP, P21,000, AA, P38,000 O c. CC, P24,000, PP, P22,000, AA, P38,000 O d. cC, P25,000, PP, P21,000, AA, P39,000
8. CC, PP, and AA, accountants, agree to form a partnership and to share profits in the ratio of 5:3:2. They also agreed that AA is to be allowed a salary of P28,000, and that PP is to be guaranteed P21,000 as his share of the profits. During the first year of operation, income from fees are P180,000, while expenses total P96,000. What amount of net income should be credited to each partner's capital account? a. cC, P28,000, PP, P16,800, AA, P11,200 O b. CC, P25,000, PP, P21,000, AA, P38,000 O c. CC, P24,000, PP, P22,000, AA, P38,000 O d. cC, P25,000, PP, P21,000, AA, P39,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:8. CC, PP, and AA, accountants, agree
to form a partnership and to share
profits in the ratio of 5:3:2. They also
agreed that AA is to be allowed a salary
of P28,000, and that PP is to be
guaranteed P21,000 as his share of the
profits. During the first year of
operation, income from fees are
P180,000, while expenses total
P96,000. What amount of net income
should be credited to each partner's
capital account? *
O a. cC, P28,000, PP, P16,800, AA, P11,200
O b. CC, P25,000, PP, P21,000, AA, P38,000
O c. CC, P24,000, PP, P22,000, AA, P38,000
O d. CC, P25,000, PP, P21,000, AA, P39,000
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