C, D, and E are partners sharing profits equally after allowing for bonus and salary allowances. C, the managing partner, is allowed a bonus of 20% of the profit. D and E are allowed salaries of 120,000 and 150,000, respectively. The partnership registered a profit of 720,000 for the year 200C. 30. How much is the bonus of C if the bonus is based on the profit after bonus but before the salary allowance? а. 75,000 b. 90,000 с. 120,000 d. 144,000 31. How much is the share of C in the profit if the bonus is based on the profit before bonus but after salary allowance? а. 90,000 b. 210,000 с. 230,000 d. 240,000
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.
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