A and B's partnership agreement provides the following: • Annual salaries of P96,000 for A and P60,000 for B. • 10% bonus to A, based on profit after salaries and bonus. • P/L ratio of 60:40. The partnership earned profit of P200,000 before salaries and bonus. Which of the following statements is correct?

A and B's partnership agreement provides the following: • Annual salaries of P96,000 for A and P60,000 for B. • 10% bonus to A, based on profit after salaries and bonus. • P/L ratio of 60:40. The partnership earned profit of P200,000 before salaries and bonus. Which of the following statements is correct?

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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