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PP and QQ are partners operating a chain of retail stores. The partnership agreement provides for the following: PP Salaries.. QQ P5,000 P10,000 Interest on average capital balances. Bonus. 10% 10% .20% of net income before interest but after bomus and salaries 70% None remainder. 30% The income summary for year 2020 shows a credit balance of P51,000 before any deductions. Average capital balances for PP and QQ are PS0,000 and P75,000, respectively. The share of PP and QQ in the P51,000 net income would be,

PP and QQ are partners operating a chain of retail stores. The partnership agreement provides for the following: PP Salaries.. QQ P5,000 P10,000 Interest on average capital balances. Bonus. 10% 10% .20% of net income before interest but after bomus and salaries 70% None remainder. 30% The income summary for year 2020 shows a credit balance of P51,000 before any deductions. Average capital balances for PP and QQ are PS0,000 and P75,000, respectively. The share of PP and QQ in the P51,000 net income would be,

FINANCIAL ACCOUNTING
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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A. PP, P26,541.50; QQ, P24,458.50

B. PP, P23,500; QQ, P27,500
 
C. PP, P26,250; QQ, P24,750
 
D. PP, P24,062.50; QQ, P26,937.50
PP and QQ are partners operating a chain of retail stores. The partnership agreement provides for the following: PP P10,000 QQ P5,000 Salaries.. Interest on average capital balances. Bonus... 10% 10% .20% of net income None before interest but after boms and salaries remainder.. 30% 70% The income summary for year 2020 shows a credit balance of P51,000 before any deductions. Average capital balances for PP and QQ are P50,000 and P75,000, respectively. The share of PP and QQ in the P51,000 net income would be;
Transcribed Image Text:PP and QQ are partners operating a chain of retail stores. The partnership agreement provides for the following: PP P10,000 QQ P5,000 Salaries.. Interest on average capital balances. Bonus... 10% 10% .20% of net income None before interest but after boms and salaries remainder.. 30% 70% The income summary for year 2020 shows a credit balance of P51,000 before any deductions. Average capital balances for PP and QQ are P50,000 and P75,000, respectively. The share of PP and QQ in the P51,000 net income would be;
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