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P, A and L formed a partnership and have average capital balances of P195,000, 246,000 and 294,000 each respectively for 2018. Their articles of co-partnership provide that the operating income be shared among the partners as follows: as salary, P20,000 for P, P22,000 for A, and P15,000 for L; interest of 10% on the average capital during 2018 for the three partners; a 10% bonus to A; and the remainder in the ratio 2:4:4, respectively. The operating income for the year ending December 31, 2018 after partners’ salaries and bonus amount to P105,000. The partnership agreement also states that L should receive a minimum of P60,000 as his share in partnerhsip operations. What is the net income for the year and the share of P in the net income? A. 22,300 C. 44,800 B. 25,800 D. 45,800

P, A and L formed a partnership and have average capital balances of P195,000, 246,000 and 294,000 each respectively for 2018. Their articles of co-partnership provide that the operating income be shared among the partners as follows: as salary, P20,000 for P, P22,000 for A, and P15,000 for L; interest of 10% on the average capital during 2018 for the three partners; a 10% bonus to A; and the remainder in the ratio 2:4:4, respectively. The operating income for the year ending December 31, 2018 after partners’ salaries and bonus amount to P105,000. The partnership agreement also states that L should receive a minimum of P60,000 as his share in partnerhsip operations. What is the net income for the year and the share of P in the net income? A. 22,300 C. 44,800 B. 25,800 D. 45,800

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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P, A and L formed a partnership and have average capital balances of P195,000, 246,000 and 294,000 each respectively for 2018. Their articles of co-partnership provide that the operating income be shared among the partners as follows: as salary, P20,000 for P, P22,000 for A, and P15,000 for L; interest of 10% on the average capital during 2018 for the three partners; a 10% bonus to A; and the remainder in the ratio 2:4:4, respectively. The operating income for the year ending December 31, 2018 after partners’ salaries and bonus amount to P105,000. The partnership agreement also states that L should receive a minimum of P60,000 as his share in partnerhsip operations. What is the net income for the year and the share of P in the net income? A. 22,300 C. 44,800 B. 25,800 D. 45,800
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