Partners Dan, Han and Pan, operating a computer store, shares profit and loss on a ratio of 4:4:3. Allocation of profit is in the following manner: a. Salaries of P 20,000, P25,000 and P15,000 respectively b. Han receives a bonus of 5% for the first P500,000 after the salaries are deducted and 10% in excess of P500,000. c. Balance of the profit is divided according to their ratio. Partnership income for the year amounted to P1,356,000. What is the total amount of bonus received by Han? What is the share in the partnership income did Pan received? What is the share in the partnership income did Han received? What is the share in the partnership income did Dan received?
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Partners Dan, Han and Pan, operating a computer store, shares
a. Salaries of P 20,000, P25,000 and P15,000 respectively
b. Han receives a bonus of 5% for the first P500,000 after the salaries are deducted and 10% in excess of P500,000.
c. Balance of the profit is divided according to their ratio.
Partnership income for the year amounted to P1,356,000.
- What is the total amount of bonus received by Han?
- What is the share in the partnership income did Pan received?
- What is the share in the partnership income did Han received?
- What is the share in the partnership income did Dan received?
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