EXERCISE 6-13. Problem Solving 4. Alloy and Aeson are partners who share profits and losses in the ratio 60% and 40%, respectively. Alloy and Aeson are given salary allowances of P120,000 and P60,000, respectively. The partners are also paid interest on their ending capital balances. In 2019, amounts of interest received by Alloy and Aeson were P60,000 and P24,000, respectively. Subsequent allocations using profit and loss ratio were then made after salary allowances and interest payments had been provided for. You are required to determine the total partnership net income if Aeson's share in the residual income (balance after salary allowances and interest) was P120,000 in 2019.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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