Juan and Jose are partners who share profits and losses in the ratio of 4:6 respectively. Juan’s salary is P 80,000 and Jose if P 40,000. The partners are paid interest on their average capital balances where Juan received interest of P 30,000 and Jose P 15,000. The profit and loss allocation is determined after deduction for the salary and interest payments. If Jose received P 120,000 from partnership income, what was the total partnership income?
Juan and Jose are partners who share profits and losses in the ratio of 4:6 respectively. Juan’s salary is P 80,000 and Jose if P 40,000. The partners are paid interest on their average capital balances where Juan received interest of P 30,000 and Jose P 15,000. The profit and loss allocation is determined after deduction for the salary and interest payments. If Jose received P 120,000 from partnership income, what was the total partnership income?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Juan and Jose are partners who share profits and losses in the ratio of 4:6 respectively. Juan’s salary is P 80,000 and Jose if P 40,000. The partners are paid interest on their average capital balances where Juan received interest of P 30,000 and Jose P 15,000. The
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