Exercise 3-5. Distribution of net income by providing salaries, interest and bonus The beginning capital contributions of the partners in the newly formed partnership are as follows: Clara, P250,000; Mara, P150,000; and Angela, P200,000. In its first nine months of operation, the partnership of Clara, Mara and Angela made a net income of P290,000, before providing for 20% annual interest on beginning capital balances and monthly salary allowance of P10,000, P5,000, and P2,500, respectively. Mara is entitled to a 25% bonus on net income after interest and salaries. Any remainder will be shared by the partners in the ratio of 5:3:2. Required: Compute for the share of Clara, Mara and Angela in the partnership profits.
Exercise 3-5. Distribution of net income by providing salaries, interest and bonus The beginning capital contributions of the partners in the newly formed partnership are as follows: Clara, P250,000; Mara, P150,000; and Angela, P200,000. In its first nine months of operation, the partnership of Clara, Mara and Angela made a net income of P290,000, before providing for 20% annual interest on beginning capital balances and monthly salary allowance of P10,000, P5,000, and P2,500, respectively. Mara is entitled to a 25% bonus on net income after interest and salaries. Any remainder will be shared by the partners in the ratio of 5:3:2. Required: Compute for the share of Clara, Mara and Angela in the partnership profits.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 3SEB
Related questions
Question
Pl3ase answer in a table form/typewritt3n (not in photo)
![Exercise 3-5.
Distribution of net income by providing
salaries, interest and bonus
The beginning capital contributions of the partners in the newly
formed partnership are as follows: Clara, P250,000; Mara,
P150,000; and Angela, P200,000. In its first nine months of
operation, the partnership of Clara, Mara and Angela made a net
income of P290,000, before providing for 20% annual interest
on beginning capital balances and monthly salary allowance of
P10,000, P5,000, and P2,500, respectively. Mara is entitled to a
25% bonus on net income after interest and salaries. Any
remainder will be shared by the partners in the ratio of 5:3:2.
Required:
Compute for the share of Clara, Mara and Angela in the
partnership profits.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7a5e350f-0835-49bf-9d6a-aba123106e53%2F7de61dc1-9a94-4a79-826d-37118f84b77e%2F7tovr1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 3-5.
Distribution of net income by providing
salaries, interest and bonus
The beginning capital contributions of the partners in the newly
formed partnership are as follows: Clara, P250,000; Mara,
P150,000; and Angela, P200,000. In its first nine months of
operation, the partnership of Clara, Mara and Angela made a net
income of P290,000, before providing for 20% annual interest
on beginning capital balances and monthly salary allowance of
P10,000, P5,000, and P2,500, respectively. Mara is entitled to a
25% bonus on net income after interest and salaries. Any
remainder will be shared by the partners in the ratio of 5:3:2.
Required:
Compute for the share of Clara, Mara and Angela in the
partnership profits.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305088436/9781305088436_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305088436/9781305088436_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College