FIZZ and GAREN partners who share profits and losses in the ratio of 3:2 respectively. Salary: P50,000 for FIZZ and P30,000 for GAREN. Interest: P30,000 for FIZZ and P10,000 for GAREN. The profit and loss allocation is determined after deductions for the salary and interest payments. If GAREN's share in the residual income (income after deducting salaries and interest) was P60,000 in 2021, what was the total partnership income?
FIZZ and GAREN partners who share profits and losses in the ratio of 3:2 respectively. Salary: P50,000 for FIZZ and P30,000 for GAREN. Interest: P30,000 for FIZZ and P10,000 for GAREN. The profit and loss allocation is determined after deductions for the salary and interest payments. If GAREN's share in the residual income (income after deducting salaries and interest) was P60,000 in 2021, what was the total partnership income?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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FIZZ and GAREN partners who share profits and losses in the ratio of 3:2 respectively.
Salary: P50,000 for FIZZ and P30,000 for GAREN.
Interest: P30,000 for FIZZ and P10,000 for GAREN.
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