and B formed a partnership. The partnership agreement stipulates the following: Annual salary allowances of P200,000 for A and P120,000 for B. Salary allowances are to be withdrawn by the partners throughout the period and are to be debited to their respective drawings account. The partners share profits equally and losses on a 60:40 ratio. During the period the partnership earned profit of P400,000 before salary allowances. How much is the share of B in the partnership profit?
and B formed a partnership. The partnership agreement stipulates the following: Annual salary allowances of P200,000 for A and P120,000 for B. Salary allowances are to be withdrawn by the partners throughout the period and are to be debited to their respective drawings account. The partners share profits equally and losses on a 60:40 ratio. During the period the partnership earned profit of P400,000 before salary allowances. How much is the share of B in the partnership profit?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
- A and B formed a
partnership . The partnership agreement stipulates the following:
- Annual salary allowances of P200,000 for A and P120,000 for B. Salary allowances are to be withdrawn by the partners throughout the period and are to be debited to their respective drawings account.
- The partners share
profits equally and losses on a 60:40 ratio.
During the period the partnership earned profit of P400,000 before salary allowances.
How much is the share of B in the partnership profit?
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