A and B formed a partnership on March 1, 20x1. The partnership agreement stipulates the following: Monthly salary allowances of P10,00 for A and P6,000 for B. Salary allowances are to be withdrawn by the partners throughout the period and are to be debited to their respective drawings accounts. The partners share profits equally and losses on a 60:40 ratio. During the period the partnership earned profit of $200,000 before salary allowances. How much is the share of Partner B in the partnership profit?

A and B formed a partnership on March 1, 20x1. The partnership agreement stipulates the following: Monthly salary allowances of P10,00 for A and P6,000 for B. Salary allowances are to be withdrawn by the partners throughout the period and are to be debited to their respective drawings accounts. The partners share profits equally and losses on a 60:40 ratio. During the period the partnership earned profit of $200,000 before salary allowances. How much is the share of Partner B in the partnership profit?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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