A. PP, P26,541.50; QQ, P24,458.50B. PP, P23,500; QQ, P27,500 C. PP, P26,250; QQ, P24,750 D. PP, P24,062.50; QQ, P26,937.50 PP and QQ are partners operating a chain of retail stores. The partnership agreement provides forthe following:PPP10,000QQP5,000Salaries..Interest on average capital balances.Bonus...10%10%.20% of net incomeNonebefore interest butafter boms and salariesremainder..30%70%The income summary for year 2020 shows a credit balance of P51,000 before any deductions.Average capital balances for PP and QQ are P50,000 and P75,000, respectively. The share of PPand QQ in the P51,000 net income would be;

Total Salary=PP+QQ=P10,000+P 5,000=P 15,000

Answered: PP and QQ are partners operating a…

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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