Espiritu and Cheng have the following profit and loss agreement: salaries of P30,000 and P45,000 for Espiritu and Cheng, respectively; a bonus to Espiritu of 10% of profit after salaries and bonus; interest of 10% of average capital balances of P20,000 and P35,000 for Espiritu and Cheng, respectively; and any balance equally. If the profit is P102,500, how much should be allocated to Espiritu? * O P58,250 O P47,796 O P44,250 O P44,125
Espiritu and Cheng have the following profit and loss agreement: salaries of P30,000 and P45,000 for Espiritu and Cheng, respectively; a bonus to Espiritu of 10% of profit after salaries and bonus; interest of 10% of average capital balances of P20,000 and P35,000 for Espiritu and Cheng, respectively; and any balance equally. If the profit is P102,500, how much should be allocated to Espiritu? * O P58,250 O P47,796 O P44,250 O P44,125
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need correct answer and correct computation. Thank you!
Transcribed Image Text:TNT a O
ON 68% 11:15
Р600,000
Espiritu and Cheng have the
following profit and loss agreement:
salaries of P30,000 and P45,000 for
Espiritu and Cheng, respectively; a
bonus to Espiritu of 10% of profit
after salaries and bonus; interest of
10% of average capital balances of
P20,000 and P35,000 for Espiritu
and Cheng, respectively; and any
balance equally. If the profit is
P102,500, how much should be
allocated to Espiritu? *
Р58,250
P47,796
P44,250
O P44,125
AB and CD are partners with capital
balances of P60,000 and P20,000,
! respectively. Profits and losses are
divided in the ratio of 60:4O. AB and
Transcribed Image Text:TNT 6 O
ON 68%
DI11:15
i docs.google.com/forms
AB and CD are partners with capital
balances of P60,000 and P20,000,
respectively. Profits and losses are
divided in the ratio of 60:4O. AB and
CD decided to form a new
partnership with EF, who invested
land valued at P15,000 for a 20%
capital interest in the new
partnership. EF's cost of land was
P12,000. What is the capital balance
of EF after admission? *
P12,000
P15,000
P16,000
O P19,000
Fred and Raul are partners who share
profits and losses in the ratio of 7:3,
respectively. Their respective capital
C. II
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