Distribution of Profits or Losses Based on Partners' Agreement The partnership contract of Eje, Basilio and Dela Torre provided for the distribution of profit or loss in the following manner: 1. Bonus of 25% of profit before the bonus to Eje. 2. Interest at 15% on average capital account balances to each partner. 3. Residual profits or losses are divided equally. Profit of Eje, Basilio and Dela Torre for 2006 was P900,000, and the average capital account balances for the year were Eje, P1,000,000; Basilio, P2,000,000; and Dela Torre, P3,000,000. Required: Prepare the profit distribution schedule.

Distribution of Profits or Losses Based on Partners' Agreement The partnership contract of Eje, Basilio and Dela Torre provided for the distribution of profit or loss in the following manner: 1. Bonus of 25% of profit before the bonus to Eje. 2. Interest at 15% on average capital account balances to each partner. 3. Residual profits or losses are divided equally. Profit of Eje, Basilio and Dela Torre for 2006 was P900,000, and the average capital account balances for the year were Eje, P1,000,000; Basilio, P2,000,000; and Dela Torre, P3,000,000. Required: Prepare the profit distribution schedule.

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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