How much is Tony’s share in the net income of the part? Tony and Steve formed a partnership on January 1, 2019. Their partnership earned a net income of 1,800,000 for the year ended 2019. The following stipulation are found in their articles of partnership: Tony is the receive a monthly salary of P25,000 as compensation for his managing duties in the partnership Steve is the receive an annual salary of P180,000 from the partnership Bonus of 15% is granted to Tony if the partnership income exceeds P1,000,000 (Bonus is computed based on the excess from P1,000,000) Each partner is to receive an interest of 10% based on their weighted average capital balances The remaining balance is divided accordingly to Tony and Steve in the ratio of 2:3 The following are the capital transaction of the partners: Tony Steve Debit Credit Debit Credit 1-Jan 600,000 700,000 1-Mar 120,000 1-Apr 300,000 1-Jul 200,000 1-Sep 90,000 30-Sep 240,000 30-Oct 150,000
How much is Tony’s share in the net income of the part? Tony and Steve formed a partnership on January 1, 2019. Their partnership earned a net income of 1,800,000 for the year ended 2019. The following stipulation are found in their articles of partnership: Tony is the receive a monthly salary of P25,000 as compensation for his managing duties in the partnership Steve is the receive an annual salary of P180,000 from the partnership Bonus of 15% is granted to Tony if the partnership income exceeds P1,000,000 (Bonus is computed based on the excess from P1,000,000) Each partner is to receive an interest of 10% based on their weighted average capital balances The remaining balance is divided accordingly to Tony and Steve in the ratio of 2:3 The following are the capital transaction of the partners: Tony Steve Debit Credit Debit Credit 1-Jan 600,000 700,000 1-Mar 120,000 1-Apr 300,000 1-Jul 200,000 1-Sep 90,000 30-Sep 240,000 30-Oct 150,000
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 6BCRQ
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- How much is Tony’s share in the net income of the part?
Tony and Steve formed a partnership on January 1, 2019. Their partnership earned a net income of 1,800,000 for the year ended 2019. The following stipulation are found in their articles of partnership:
- Tony is the receive a monthly salary of P25,000 as compensation for his managing duties in the partnership
- Steve is the receive an annual salary of P180,000 from the partnership
- Bonus of 15% is granted to Tony if the partnership income exceeds P1,000,000 (Bonus is computed based on the excess from P1,000,000)
- Each partner is to receive an interest of 10% based on their weighted average capital balances
- The remaining balance is divided accordingly to Tony and Steve in the ratio of 2:3
- The following are the capital transaction of the partners:
|
|
Tony |
Steve |
||
|
|
Debit |
Credit |
Debit |
Credit |
|
1-Jan |
|
600,000 |
|
700,000 |
|
1-Mar |
120,000 |
|
|
|
|
1-Apr |
|
|
|
300,000 |
|
1-Jul |
|
200,000 |
|
|
|
1-Sep |
|
|
90,000 |
|
|
30-Sep |
|
240,000 |
|
|
|
30-Oct |
150,000 |
|
|
|
Note: Please provide a good accounting form solution so that i can understand better. Thank you!
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