accept a salary of P40,000 or a salary of P25,000 plus a bonus of 10% of net income after salary and bonus as a means of allocating profit among partners. Salaries traceable to the other partners are estimated to be P100,000. What amount of of income would be necessary so that Lancelot would consider the choices to be equal? P165,000 P290,000 P305,000d. P256,000
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.
Gerald is trying to decide wheter to accept a salary of P40,000 or a salary of P25,000 plus a bonus of 10% of net income after salary and bonus as a means of allocating profit among partners. Salaries traceable to the other partners are estimated to be P100,000. What amount of of income would be necessary so that Lancelot would consider the choices to be equal?
P165,000
P290,000
P305,000d.
P256,000
Step by step
Solved in 2 steps with 1 images
