John and Myung are partners in Six-string Co. Their partnership agreement states that John is entitled to an annual salary of ₱100,000 and a bonus of 10% of profit after salary but before bonus. The remainder is shared in the ratio of 7:2. Myungs’s share in partnership profit for the year was ₱296,000. How much was John’s bonus if the net income is 1,580,000?
John and Myung are partners in Six-string Co. Their partnership agreement states that John is entitled to an annual salary of ₱100,000 and a bonus of 10% of profit after salary but before bonus. The remainder is shared in the ratio of 7:2. Myungs’s share in partnership profit for the year was ₱296,000. How much was John’s bonus if the net income is 1,580,000?
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 45P
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John and Myung are partners in Six-string Co. Their
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