profits on the ratio 3:2. Partner’s Paru-paru Gee will receive a yearly bonus of 20% of the profits after deducting salaries and bonus, in addition to his profit share; While partner’s Kokak Yoo will receive an annual salary of P30,000, in addition to his profit share. The annual profit is P90,000.
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.
The partner’s Paru-paru Gee and Kokak Yoo, share profits on the ratio 3:2.
Partner’s Paru-paru Gee will receive a yearly bonus of 20% of the profits after deducting salaries and bonus, in
addition to his profit share;
While partner’s Kokak Yoo will receive an annual salary of P30,000, in addition to his profit share.
The annual profit is P90,000.
1. How much was the share of Paru-paru Gee on the
A. 30,000
C. 40,000
B. 40,800
D. 45,000
2. How much was the share of Kokak-Yoo on the partnership profit?
A. 60,000
C. 49,200
B. 50,000
D. 45,000
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