A and B formed a partnership. The partnership agreement stipulates the following: Annual salary allowance of P100,000 for A, the managing partner. 10% bonus to A after salaries but before deduction for the Bonus. The partners share in profits and losses equally. The share of A in the partnership profit during the period was P595,000, including a bonus of P90,000. How much was the share of B? 386,000 c. 405,000 398,000 d. 504,000
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
A and B formed a
- Annual salary allowance of P100,000 for A, the managing partner.
- 10% bonus to A after salaries but before deduction for the Bonus.
- The partners share in
profits and losses equally.
The share of A in the partnership profit during the period was P595,000, including a bonus of P90,000. How much was the share of B?
- 386,000 c. 405,000
- 398,000 d. 504,000
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