Partners B1 and B2 share income in a 2:1 ratio, respectively. Each partner receives an annual salary allowance of P72,000. If the salaries are recorded in the accounts of the partnership as an expense rather than treated as an allocation of profit, the total amount allocated to each partner for salaries and profit would be a. unchanged for both B1 and B2 b. less for both B1 and B2 c. more for B1 and less for B2 d. more for B2 and less for B1 d. more for B2 and less for B1
Partners B1 and B2 share income in a 2:1 ratio, respectively. Each partner receives an annual salary allowance of P72,000. If the salaries are recorded in the accounts of the partnership as an expense rather than treated as an allocation of profit, the total amount allocated to each partner for salaries and profit would be a. unchanged for both B1 and B2 b. less for both B1 and B2 c. more for B1 and less for B2 d. more for B2 and less for B1 d. more for B2 and less for B1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Partners B1 and B2 share income in a 2:1 ratio, respectively. Each partner receives an annual
salary allowance of P72,000. If the salaries are recorded in the accounts of the partnership as an
expense rather than treated as an allocation of profit, the total amount allocated to each partner for
salaries and profit would be
a. unchanged for both B1 and B2
b. less for both B1 and B2
c. more for B1 and less for B2
d. more for B2 and less for B1
d. more for B2 and less for B1
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