A and B formed a partnership. The partnership agreement stipulates the following:Annual salary allowances of P80,000 for A and #40,000 for B.The partners share in profits and losses equally.The partnership earned profit of P100,000. How much is the share of B?

Profit after salary=Profit earned-Salary of A & B=100,000-80,000+40,000=100,000-120,000=-20,000

Answered: A and B formed a partnership. The…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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A and B formed a partnership. The partnership agreement stipulates the following: Annual salary allowances of P80,000 for A and P40,000 for B. The partners share in profits and losses equally. The partnership earned profit of P100,000. How much is the share of B?