3.3 Bi, Ni, and Tin formed a partnership and agreed to maintain anaverage investment of P 100,000, P 50,000 and P 50,000,respectively. Interest on any capital excess or deficiency is to becomputed at 10%. After the interest allowance, the partners are toshare the balance in the ratio of 5:3:2 for Bi, Ni, and Tin,respectively. The actual amounts invested during the year were: Bi, P120,000; Ni, P 60,000; and Tin, P 35,000. Net profit was P 12,500.REQUIRED: How should the net income be distributed?

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a partnership and agreed to maintar Bi, Ni, average investment of P 100,000, P 50,000 and P 50 respectively. Interest on any capital excess or deficiency is t computed at 10%. After the interest allowance, the partners a. share the balance in the ratio of 5:3:2 for Bi, Ni, and respectively. The actual amounts invested during the year were: orm

a partnership and agreed to maintar Bi, Ni, average investment of P 100,000, P 50,000 and P 50 respectively. Interest on any capital excess or deficiency is t computed at 10%. After the interest allowance, the partners a. share the balance in the ratio of 5:3:2 for Bi, Ni, and respectively. The actual amounts invested during the year were: orm

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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