Abulencia and Daguiso have the following profit and loss agreement: salaries of P30,000 and P45,000 for Abulencia and Daguiso, respectively; a bonus to Abulencia of 10% of profit after salaries and bonus; and interest of 10% on average capital balances of P20,000 and P35,000 for Abulencia and Daguiso, respectively. One-third of any remaining profit is allocated to Abulencia and the balance to Daguiso. If the partnership had a profit of P102,500, how much should be allocated Abulencia?
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.
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