On January 1, Aya, Becca, Celia, and Divina, formed Fab Trading, a local partnership, with capital contributions of P50,000, P25,000, P25,000, and P20,000, respectively. The articles of co-partnership provided that: • Each partner shall receive a 5% interest on contributed capital; • Aya and Becca shall receive salaries of P5,000 and P3,000, respectively; • Celia shall receive a minimum of P2,500 per annum and Divina a minimum of P6,000 per annum, which is inclusive of amounts representing interest and share of remaining profits; and • The balance of the profits shall be distributed to Aya, Becca, Celia, and Divina in a 3:3:2:2 ratio. The amount that should be earned by the partnership, before any charge for interest and salaries, so that Aya would receive an aggregate of P12,500 including interest, salary, and share in the remaining profits would be closest to A. P16,667 B. P30,000 C. P30,667 D. P32,333

On January 1, Aya, Becca, Celia, and Divina, formed Fab Trading, a local partnership, with capital contributions of P50,000, P25,000, P25,000, and P20,000, respectively. The articles of co-partnership provided that: • Each partner shall receive a 5% interest on contributed capital; • Aya and Becca shall receive salaries of P5,000 and P3,000, respectively; • Celia shall receive a minimum of P2,500 per annum and Divina a minimum of P6,000 per annum, which is inclusive of amounts representing interest and share of remaining profits; and • The balance of the profits shall be distributed to Aya, Becca, Celia, and Divina in a 3:3:2:2 ratio. The amount that should be earned by the partnership, before any charge for interest and salaries, so that Aya would receive an aggregate of P12,500 including interest, salary, and share in the remaining profits would be closest to A. P16,667 B. P30,000 C. P30,667 D. P32,333

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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