The partnership agreement of A, B and C stipulates the following: • A, the managing partner, shall receive a bonus of 10% of profit. • Each partner shall receive a 6% interest on average capital investments. Any remaining profit or loss shall be shared equally. The average capital investments of the partners during the year were P80,000 for A, P50,000 for B, and P30,000 for C. The partnership earned profit of P100,000 during the period. How much was A's share?
The partnership agreement of A, B and C stipulates the following: • A, the managing partner, shall receive a bonus of 10% of profit. • Each partner shall receive a 6% interest on average capital investments. Any remaining profit or loss shall be shared equally. The average capital investments of the partners during the year were P80,000 for A, P50,000 for B, and P30,000 for C. The partnership earned profit of P100,000 during the period. How much was A's share?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3. How much was the share of A?
Transcribed Image Text:3. The partnership agreement of A, B and C stipulates the
following:
• A, the managing partner, shall receive a bonus of 10% of
profit.
Each partner shall receive a 6% interest on average capital
investments.
Any remaining profit or loss shall be shared equally.
The average capital investments of the partners during the year
were P80,000 for A, P50,000 for B, and P30,000 for C. The
partnership earned profit of Pl00,000 during the period, How
much was A's share?
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