A and B formed a Partnership on January 1, 2020. A contributed capital of P50,000, while B contributed capital of P30,000. The Partnership agreement provides for the following: • Capital accounts are to be credited annually with interest at 5% of the beginning capital. • Partner B is to be paid salary of P2,000 a month. • Partner B is to receive a bonus of 10% based on the net income. The Partnership's income statement for the year ended is as follows: Revenues P101,000 Expenses (including salary, 30,000 interest, and bonus) Net income 71,000 Determine the amount of bonus.
A and B formed a Partnership on January 1, 2020. A contributed capital of P50,000, while B contributed capital of P30,000. The Partnership agreement provides for the following: • Capital accounts are to be credited annually with interest at 5% of the beginning capital. • Partner B is to be paid salary of P2,000 a month. • Partner B is to receive a bonus of 10% based on the net income. The Partnership's income statement for the year ended is as follows: Revenues P101,000 Expenses (including salary, 30,000 interest, and bonus) Net income 71,000 Determine the amount of bonus.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A and B formed a Partnership on January 1,
2020. A contributed capital of P50,000, while
B contributed capital of P30,000. The
Partnership agreement provides for the
following:
• Capital accounts are to be credited
annually with interest at 5% of the
beginning capital.
• Partner B is to be paid salary of P2,000 a
month.
• Partner B is to receive a bonus of 10%
based on the net income.
The Partnership's income statement for the
year ended is as follows:
Revenues
P101,000
Expenses (including salary,
30,000
interest, and bonus)
Net income
71,000
Determine the amount of bonus.
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