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: Do I need to distribute the net income in getting the ending?
Edmund, Harry and Vincent formed a
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:
Do I need to distribute the net income in getting the ending?
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