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e profit shares of Abel and Badel res

e profit shares of Abel and Badel res

FINANCIAL ACCOUNTING
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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15. Abel and Badel are partners operating a grocery store. Their partnership requires that profits and losses be divided as folows: Abel Badel Salaries P105,000 None Commission on gross sales None 2% Interest on average capital balances 8% 8% 20% of net income before commission and Bonuses interest but after salaries and bonus Remainder 60% 40% Gross sales for 2020 were P6,562,500. Income before deducting amounts for salary, commission, interest, and bonus were P1,050,000. Average capital balances of Abel and Badel are P2,100,000 and P2,205,000 respectively. What are the profit shares of Abel and Badel respectively? a. P617,610 and P432,390 b. P186,165 and P124,740 C. P580,860 and P469,140 d. P616,665 and P433,335
Transcribed Image Text:15. Abel and Badel are partners operating a grocery store. Their partnership requires that profits and losses be divided as folows: Abel Badel Salaries P105,000 None Commission on gross sales None 2% Interest on average capital balances 8% 8% 20% of net income before commission and Bonuses interest but after salaries and bonus Remainder 60% 40% Gross sales for 2020 were P6,562,500. Income before deducting amounts for salary, commission, interest, and bonus were P1,050,000. Average capital balances of Abel and Badel are P2,100,000 and P2,205,000 respectively. What are the profit shares of Abel and Badel respectively? a. P617,610 and P432,390 b. P186,165 and P124,740 C. P580,860 and P469,140 d. P616,665 and P433,335
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