PROBLEM 3: EXERCISES 1. Partners A and B share in profits and los es on a 70:30 ratio after salaries of P80,000 for A and P40,000 or B. The business earned profit of P180,000 before deduction or the salaries. Requirements: a. Compute for the partners' respective share in the profit. b. Provide the journal entries (the salar are withdrawn periodically).
PROBLEM 3: EXERCISES 1. Partners A and B share in profits and los es on a 70:30 ratio after salaries of P80,000 for A and P40,000 or B. The business earned profit of P180,000 before deduction or the salaries. Requirements: a. Compute for the partners' respective share in the profit. b. Provide the journal entries (the salar are withdrawn periodically).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The image has a large space but the continued question is below. Pls provide an explanation in order for me to review it. It's just so hard since I don't have a reference or book. Thank you!
Transcribed Image Text:Requirement: Compute for the respective shares of the partners in |
shared equally, while losses on a 70:30 ratio. The partnership
PROBLEM 3: EXERCISES
1. Partners A and B share in profits and los es on a 70:30 ratio
after salaries of P80,000 for A and P40,000 or B. The business
earned profit of P180,000 before deduction or the salaries.
Requirements:
a. Compute for the partners' respective share in the profit.
b. Provide the journal entries (the salar are withdrawn
periodically).
for annual salary
2. A and B's partnership agreement provi
allowances of P160,000 for A and P80, for B. Profits are
earned profit of P200,000.
Reguirement: Compute for the respective shares of the partners in
the profit.
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