REQUIRED: Show how the net profit will be divided. 3.9 Bah, Lee and Wag have capital balances of P 15,000, P 10,000, and P 20,000, respectively. The partners agreed to the following distribution of profits: a. 10% interest on the capital balances b. Lee is entitled to a salary of P 6,000 c. Wag is guaranteed a minimum share of P 12,000. d. Remainder is to be divided 3:3:4 for Bah, Lee and Wag, respectively.

REQUIRED: Show how the net profit will be divided. 3.9 Bah, Lee and Wag have capital balances of P 15,000, P 10,000, and P 20,000, respectively. The partners agreed to the following distribution of profits: a. 10% interest on the capital balances b. Lee is entitled to a salary of P 6,000 c. Wag is guaranteed a minimum share of P 12,000. d. Remainder is to be divided 3:3:4 for Bah, Lee and Wag, respectively.

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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