Ceradoy, Manongsong and Anuran are partners sharing residual profits in the ratio of 3:2:1. The partnership agreement provides for 8% interest on capital and a salary for Manongsong of P80,000 per anmum. Profit for 2019 was P840,000 and the year end balances on partner’s capital accounts are as follows: Ceradoy, P2000,000; Manongsong, P150,000 and Anuran, P120,000. What was Anuran’s share of residual profits for 2019? a. P120,400 b. P126,670 c. P130,000 d. P140,000
Ceradoy, Manongsong and Anuran are partners sharing residual profits in the ratio of 3:2:1. The partnership agreement provides for 8% interest on capital and a salary for Manongsong of P80,000 per anmum. Profit for 2019 was P840,000 and the year end balances on partner’s capital accounts are as follows: Ceradoy, P2000,000; Manongsong, P150,000 and Anuran, P120,000. What was Anuran’s share of residual profits for 2019? a. P120,400 b. P126,670 c. P130,000 d. P140,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ceradoy, Manongsong and Anuran are partners sharing residual profits in the ratio of 3:2:1. The
partnership agreement provides for 8% interest on capital and a salary for Manongsong of P80,000 per
anmum. Profit for 2019 was P840,000 and the year end balances on partner’s capital accounts are as
follows: Ceradoy, P2000,000; Manongsong, P150,000 and Anuran, P120,000. What was Anuran’s share
of residual profits for 2019?
a. P120,400
b. P126,670
c. P130,000
d. P140,000
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