Edmund, Harry and Vincent formed a partnership on January 1, 2018. Each contributed P120,000. Salaries were to be allocated as follows: Edmund- P30,000 Harry- P30,000 Vincent- P45,000 Drawings were equal to salaries and be taken out evenly throughout the year. With sufficient partnership net income, Edmund and Harry could split a bonus equal to 25% of partnership net income after salaries and bonus (in no event could the bonus go below zero). Remaining profits were to be divided as follows: 30% for Edmund; 30% for Harry, and 40% for Vincent. For the year, partnership net income was P120,000. Compute the ending capital for each partner:
Edmund, Harry and Vincent formed a partnership on January 1, 2018. Each contributed P120,000. Salaries were to be allocated as follows: Edmund- P30,000 Harry- P30,000 Vincent- P45,000 Drawings were equal to salaries and be taken out evenly throughout the year. With sufficient partnership net income, Edmund and Harry could split a bonus equal to 25% of partnership net income after salaries and bonus (in no event could the bonus go below zero). Remaining profits were to be divided as follows: 30% for Edmund; 30% for Harry, and 40% for Vincent. For the year, partnership net income was P120,000. Compute the ending capital for each partner:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Edmund, Harry and Vincent formed a partnership on January 1, 2018. Each contributed P120,000.
Salaries were to be allocated as follows:
Edmund- P30,000 Harry- P30,000 Vincent- P45,000
Drawings were equal to salaries and be taken out evenly throughout the year.
With sufficient partnership net income, Edmund and Harry could split a bonus equal to 25% of partnership net income after salaries and bonus (in no event could the bonus go below zero).
Remaining profits were to be divided as follows: 30% for Edmund; 30% for Harry, and 40% for Vincent. For the year, partnership net income was P120,000.
Compute the ending capital for each partner:
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