LCX, MRD, and NTJ are partners in LMN Partnership. The partnership contract stipulated that profit or loss shall be divided as follows: Salaries of P175,000 to LCX, P262,500 to MRD, and P350,000 to NTJ; A bonus to NTJ of 10% of profit after deduction of partners' salaries; Remaining profit or loss as follows: 30% to LCX, 40% to MRD, and 30% to NTJ.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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3.
LCX, MRD, and NTJ are partners in LMN Partnership. The partnership
contract stipulated that profit or loss shall be divided as follows:
Salaries of P175,000 to LCX, P262,500 to MRD, and P350,000 to
NTJ;
A bonus to NTJ of 10% of profit after deduction of partners'
salaries;
Remaining profit or loss as follows: 30% to LCX, 40% to MRD, and
30% to NTJ.
Transcribed Image Text:3. LCX, MRD, and NTJ are partners in LMN Partnership. The partnership contract stipulated that profit or loss shall be divided as follows: Salaries of P175,000 to LCX, P262,500 to MRD, and P350,000 to NTJ; A bonus to NTJ of 10% of profit after deduction of partners' salaries; Remaining profit or loss as follows: 30% to LCX, 40% to MRD, and 30% to NTJ.
Prepare a schedule to divide profit or loss and give the entries to divide t
Required:
the
same among the partners under each of the following assumptions:
(a)
Profit for the year is P1,050,000.
(b)
Profit for the year is P787,500.
(c)
Net loss for the year is P140,000.
Transcribed Image Text:Prepare a schedule to divide profit or loss and give the entries to divide t Required: the same among the partners under each of the following assumptions: (a) Profit for the year is P1,050,000. (b) Profit for the year is P787,500. (c) Net loss for the year is P140,000.
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