KC and Jojo are considering formed a partnership whereby profits will be allocated through the use of salaries, interest and bonuses. The following are their capital balances for the current year, 2019: KC, Capital Jojo, Capital 1-Jan -35,000 -25,000 1-Mar -10,000 1-Jun -10,000 1-Sep 10,000 1-Oct -5,000 1-Nov 5,000 1-Dec -8,000 It was agreed that a bonus of 10% of partnership profits after bonus is credited to KC. Further a salary of P35,000 and P20,000 is allocated to Jojo and KC, respectively; a 10% interest on weighted capital is allocated; and remainder is equally divided. The profit for the year amounted to P65,191. How much is the profit distribution to KC and Jojo, respectively? (Round off to nearest peso) P29,671 / P36,520 P29,967 / P36,224 P29,159/ P32,032 P29,455 / P35,736
KC and Jojo are considering formed a partnership whereby profits will be allocated through the use of salaries, interest and bonuses. The following are their capital balances for the current year, 2019: KC, Capital Jojo, Capital 1-Jan -35,000 -25,000 1-Mar -10,000 1-Jun -10,000 1-Sep 10,000 1-Oct -5,000 1-Nov 5,000 1-Dec -8,000 It was agreed that a bonus of 10% of partnership profits after bonus is credited to KC. Further a salary of P35,000 and P20,000 is allocated to Jojo and KC, respectively; a 10% interest on weighted capital is allocated; and remainder is equally divided. The profit for the year amounted to P65,191. How much is the profit distribution to KC and Jojo, respectively? (Round off to nearest peso) P29,671 / P36,520 P29,967 / P36,224 P29,159/ P32,032 P29,455 / P35,736
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- KC and Jojo are considering formed a partnership whereby profits will be allocated through the use of salaries, interest and bonuses. The following are their capital balances for the current year, 2019:
|
|
KC, Capital |
Jojo, Capital |
|
1-Jan |
-35,000 |
-25,000 |
|
1-Mar |
|
-10,000 |
|
1-Jun |
-10,000 |
|
|
1-Sep |
|
10,000 |
|
1-Oct |
-5,000 |
|
|
1-Nov |
|
5,000 |
|
1-Dec |
|
-8,000 |
It was agreed that a bonus of 10% of partnership profits after bonus is credited to KC. Further a salary of P35,000 and P20,000 is allocated to Jojo and KC, respectively; a 10% interest on weighted capital is allocated; and remainder is equally divided. The profit for the year amounted to P65,191. How much is the profit distribution to KC and Jojo, respectively? (Round off to nearest peso)
- P29,671 / P36,520
- P29,967 / P36,224
- P29,159/ P32,032
- P29,455 / P35,736
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