The following data were taken from the books of A&B Co, a partnership of Alpha and Beta for 20x1: Alpha Capital 240,000 Beta, Capital 360,000 PL ratio 1:2 Net income for the year 260,000 The partners agreed on the following profit and loss sharing terms: Salary of P 5,000 a month for Beta 10% interest on the capital balances 20% bonus for Alpha Round your answer to the nearest thousandth. How much is the share of Beta if bonus is to be computed after deducting salaries and interest? P 171,000 P 156,000 P 104,000 Some other amount How much is the share of Alpha if bonus is to be computed after salaries, interest and bonus? P 89,000 P 171,000 P 86,000 P174,000
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
The following data were taken from the books of A&B Co, a partnership of Alpha and Beta for 20x1:
Alpha Capital 240,000
Beta, Capital 360,000
PL ratio 1:2
Net income for the year 260,000
The partners agreed on the following
- Salary of P 5,000 a month for Beta
- 10% interest on the capital balances
- 20% bonus for Alpha
- Round your answer to the nearest thousandth.
How much is the share of Beta if bonus is to be computed after deducting salaries and interest?
-
- P 171,000
- P 156,000
- P 104,000
- Some other amount
How much is the share of Alpha if bonus is to be computed after salaries, interest and bonus?
-
- P 89,000
- P 171,000
- P 86,000
- P174,000
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