B. G, and C put up a partnership on April 1, 2017. The following capital balances were taken from the books on December 31, 2017. before closing net income: B, Capital P84,000 G, Capital 114,000 C, Capital 92,000 During the year, B permanently withdrew P10,000 cash while C invested a property with a fair value of P22,000. The partners agreed to distribute profits for the first year as follows: . Annual salary of P30,000 to G and P25,000 to C. Allow a 5% interest to each partner on their capital at the inception of the partnership. . Allow a 20% bonus to B based on net income after salaries, interests, and bonus. Any remaining undistributed profit or loss will be distributed in the following manner: . In the ratio 2:3:5, if under-allocated • Equally, if over-allocated Case 1: The net income of the partnership is P100,000 during the year 2017. How much is the bonus given to B? 0 7,979 O8.054 O 7.375 07475
B. G, and C put up a partnership on April 1, 2017. The following capital balances were taken from the books on December 31, 2017. before closing net income: B, Capital P84,000 G, Capital 114,000 C, Capital 92,000 During the year, B permanently withdrew P10,000 cash while C invested a property with a fair value of P22,000. The partners agreed to distribute profits for the first year as follows: . Annual salary of P30,000 to G and P25,000 to C. Allow a 5% interest to each partner on their capital at the inception of the partnership. . Allow a 20% bonus to B based on net income after salaries, interests, and bonus. Any remaining undistributed profit or loss will be distributed in the following manner: . In the ratio 2:3:5, if under-allocated • Equally, if over-allocated Case 1: The net income of the partnership is P100,000 during the year 2017. How much is the bonus given to B? 0 7,979 O8.054 O 7.375 07475
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:B, G, and C put up a partnership on April 1, 2017. The following capital balances were taken from the books on December 31, 2017.
before closing net income:
B, Capital
P84,000
G, Capital
114,000
C, Capital
92,000
During the year, B permanently withdrew P10,000 cash while C invested a property with a fair value of P22,000.
The partners agreed to distribute profits for the first year as follows:
Annual salary of P30,000 to G and P25,000 to C.
Allow a 5% interest to each partner on their capital at the inception of the partnership.
Allow a 20% bonus to B based on net income after salaries, interests, and bonus.
Any remaining undistributed profit or loss will be distributed in the following manner:
. In the ratio 2:3:5, if under-allocated
Equally, if over-allocated
Case 1: The net income of the partnership is P100,000 during the year 2017.
How much is the bonus given to B?
0 7.979
O 8,054
O 7.375
07475
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