Assuming the partnership incurred a loss of P400,000 in 2020. Since they are both active in partnership's affair, each one will receive a P50,000 salaryallowance per yearTasks:determine the new partners' capital after the distribution of profit and loss. Bosing and Baste are partners. Their partnership agreement are as follows:1 they will give a 20% interest on their beginning capital.2 since they are both active in the partnership's affair, each one will receive salary allowance per year.3 since Bosing is the managing partner, he will receive a 20% bonus on net income after deductingsalary allowance, interest on beginning capital and after bonus ; and4 the balance in the ratio of 70:30 for Bosing and BasteBaste, Capital|200,000.0Bosing CapitalBosing, DrawingBaste, DrawingJan 1400,000.00150,00050,000Apr 150,000.00Jun 1100,000.00100,000.0Sept 150,000.0050,000.00

The income of partnership firm is distributed between the existing partners in the agreed…

Assuming the partnership incurred a loss of P400,000 in 2020. Since they are both active in partnership's affair, each one will receive a P50,000 salary allowance per year Tasks: determine the new partners' capital after the distribution of profit and loss.

Assuming the partnership incurred a loss of P400,000 in 2020. Since they are both active in partnership's affair, each one will receive a P50,000 salary allowance per year Tasks: determine the new partners' capital after the distribution of profit and loss.

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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