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The A,B,C partnership agreement specifies that partnership net income be allocated as follows:                                                        A                         B                      C             Salary allowance                       P30,000               P10,000               P40,000 Interest on ave. capital balance  10%                     10%                      10%       Remainder                                  40%                      40%                     20%       The average capital balances for the current year were P50,000 for A, P30,000 for B, and P20,000 FOR c. Assuming a current year net income of P150,000, what amount should be allocated to each partner? Assuming a current year net income of P50,000, what amount should be allocated to each partner

The A,B,C partnership agreement specifies that partnership net income be allocated as follows:                                                        A                         B                      C             Salary allowance                       P30,000               P10,000               P40,000 Interest on ave. capital balance  10%                     10%                      10%       Remainder                                  40%                      40%                     20%       The average capital balances for the current year were P50,000 for A, P30,000 for B, and P20,000 FOR c. Assuming a current year net income of P150,000, what amount should be allocated to each partner? Assuming a current year net income of P50,000, what amount should be allocated to each partner

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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Problem 3. The A,B,C partnership agreement specifies that partnership net income be allocated as follows:

                                                       A                         B                      C            

Salary allowance                       P30,000               P10,000               P40,000
Interest on ave. capital balance  10%                     10%                      10%      
Remainder                                  40%                      40%                     20%      

The average capital balances for the current year were P50,000 for A, P30,000 for B, and P20,000 FOR c.

  1. Assuming a current year net income of P150,000, what amount should be allocated to each partner?
  2. Assuming a current year net income of P50,000, what amount should be allocated to each partner?
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