The partnership of Ben and Ban has the following provisions in the partnership agreement: 1. A partner earns 10% interest on the excess of his average capital over the other partner. 2. Ben and Ban are allowed annual salaries of P300,000 and P200,000, respectively. 3. Any remaining profit or loss is to be divided in the ratio of 40:60. The average capital of Ben is P1,000,000 and that of Bunye is P500,000. Instructions: Prepare a profit distribution schedule assuming the profit f the partnership is (a) P800,000; and (b) P400,000.

The partnership of Ben and Ban has the following provisions in the partnership agreement: 1. A partner earns 10% interest on the excess of his average capital over the other partner. 2. Ben and Ban are allowed annual salaries of P300,000 and P200,000, respectively. 3. Any remaining profit or loss is to be divided in the ratio of 40:60. The average capital of Ben is P1,000,000 and that of Bunye is P500,000. Instructions: Prepare a profit distribution schedule assuming the profit f the partnership is (a) P800,000; and (b) P400,000.

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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