PJ, Ian, and Lemuel are partners in an accounting firm. Their capital account balances at year-end were PJ, P180,000; Ian, P220,000; and Lemuel, P100,000. They share profits and losses on a 4:4:2 ratio, after the following special terms: 1) Partner Ian is to receive a bonus of 10% of net income after the bonus. 2) Interests of 10% shall be paid on that portion of a partner's capital in excess of P200,000. 3) Salaries of P20,000 and P24,000 shall be paid to partners PJ and Lemuel, respectively. Assuming a net income of P88,000 for the year, the total profit share of partner Lemuel was:

PJ, Ian, and Lemuel are partners in an accounting firm. Their capital account balances at year-end were PJ, P180,000; Ian, P220,000; and Lemuel, P100,000. They share profits and losses on a 4:4:2 ratio, after the following special terms: 1) Partner Ian is to receive a bonus of 10% of net income after the bonus. 2) Interests of 10% shall be paid on that portion of a partner's capital in excess of P200,000. 3) Salaries of P20,000 and P24,000 shall be paid to partners PJ and Lemuel, respectively. Assuming a net income of P88,000 for the year, the total profit share of partner Lemuel was:

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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