The Articles of Partnership of Kageyama and Kenma have the following provisions stipulated: . An annual salary of P60,000 each • Bonus to Kageyama of the 20% profit. Balance to be divided equally The partnership reported a net income of P360,000. How much is the share of Kenma in the profit? ●

The Articles of Partnership of Kageyama and Kenma have the following provisions stipulated: . An annual salary of P60,000 each • Bonus to Kageyama of the 20% profit. Balance to be divided equally The partnership reported a net income of P360,000. How much is the share of Kenma in the profit? ●

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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Concept explainers

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.

Question

The Articles of Partnership of Kageyama and Kenma have the following provisions stipulated:
An annual salary of P60,000 each
Bonus to Kageyama of the 20% profit.
• Balance to be divided equally
The partnership reported a net income of P360,000. How much is the share of Kenma in the profit?
.
·

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