If the net income is P 200,000, salaries given to partners amount to 60,000, interest to partners’ capital amount to 40,000 and bonus is 20% of net income after salaries, interest, and bonus, how much is the bonus?
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.
If the net income is P 200,000, salaries given to partners amount to 60,000, interest to partners’ capital amount to 40,000 and bonus is 20% of net income after salaries, interest, and bonus, how much is the bonus?
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