On January 1, 20xx, A, B, C and D formed 5G Trading Co., a partnership with capital 4. contributions as follows: A, P500,000; B, P250,000; C, P250,000; and D, P200,000. The partnership contract provided that each partner shall receive a 5% interest on contributed capital, and that A and B shall receive salaries of P50,000 and P30,000 respectively. The contract also provided that C shall receive a minimum of P2,500 per annum, and Da minimum of P60,000 per annum, which is inclusive of amounts representing interest and share of remaining profits. The balance of the profit shall be distributed to A, B,C and D in a 3:3:2:2 ratio. What amount must be earned by the partnership, before any charge for interest and salaries, so that A may receive an aggregate of P125,000 including interest, salary and share of profit? a. P166,667 с. Р300,000 b. Р300,000 d. P323,333

On January 1, 20xx, A, B, C and D formed 5G Trading Co., a partnership with capital 4. contributions as follows: A, P500,000; B, P250,000; C, P250,000; and D, P200,000. The partnership contract provided that each partner shall receive a 5% interest on contributed capital, and that A and B shall receive salaries of P50,000 and P30,000 respectively. The contract also provided that C shall receive a minimum of P2,500 per annum, and Da minimum of P60,000 per annum, which is inclusive of amounts representing interest and share of remaining profits. The balance of the profit shall be distributed to A, B,C and D in a 3:3:2:2 ratio. What amount must be earned by the partnership, before any charge for interest and salaries, so that A may receive an aggregate of P125,000 including interest, salary and share of profit? a. P166,667 с. Р300,000 b. Р300,000 d. P323,333

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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3.
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