Hunt, Tob, Turman and Kelly own a publishing company that they operate as a partnership. The partnership agreement includes the following: • Hunt receives a salary of P20,000 and a bonus of 3% of income after all bonuses. • Rob roceives a salary of P10,000 and a bonus of 2% of income after all bonuses. • All partners are to receive 10% interest on their average capital balances. The average capital balances are Hunt, P50,000; Rob, P45,000; Turman, P20,000, and Kelly, P47,000. Any remaining profits and losses are to be allocated oqually among the partners. Determine how a profit of P105,000 would be allocated among the partners.
Hunt, Tob, Turman and Kelly own a publishing company that they operate as a partnership. The partnership agreement includes the following: • Hunt receives a salary of P20,000 and a bonus of 3% of income after all bonuses. • Rob roceives a salary of P10,000 and a bonus of 2% of income after all bonuses. • All partners are to receive 10% interest on their average capital balances. The average capital balances are Hunt, P50,000; Rob, P45,000; Turman, P20,000, and Kelly, P47,000. Any remaining profits and losses are to be allocated oqually among the partners. Determine how a profit of P105,000 would be allocated among the partners.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A. Hunt, P41,450; Rob; P29,950; Turman, P15,450; Kelly, P18,150
B. Hunt; P28,000; Rob, P16,500; Turman, P2,000; Kelly, P4,700
C. Cannot be determined
D. Hunt, P39,700; Rob, P29,200; Turman, P16,700; Kelly, P19,400
Transcribed Image Text:Hunt, Tob, Turman and Kelly own a publishing company that they operate as a partnership. The
partnership agreement includes the following:
• Hunt receives a salary of P20,000 and a bonus of 3% of income after all bonuses.
• Rob receives a salary of P10,000 and a bonus of 2% of income after all bonuses.
• All partners are to receive 10% interest on their average capital balances.
The average capital balances are Hunt, P50,000; Rob, P45,000; Turman, P20,000, and Kelly,
P47,000. Any remaining profits and losses are to be allocated equally among the partners.
Determine how a profit of P105,000 would be allocated among the partners.
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