The terms of a partnershipagreement provide that one ofthe partners is to receive asalary allowance of P30,000,plus a bonus of 20 percent ofincome after deduction of thebonus and the salaryallowance. If income isP150,000, the bonus shouldbe: *

Here, we've Bonus percentage = 20% Total income = $150,000 Salary allowance = $30,000 Let's take…

The terms of a partner agreement provide tha the partners is to rece salary allowance of P3 plus a bonus of 20 per income after deductio bonus and the salary allowance. If income is P150,000, the bonus s

The terms of a partner agreement provide tha the partners is to rece salary allowance of P3 plus a bonus of 20 per income after deductio bonus and the salary allowance. If income is P150,000, the bonus s

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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Concept explainers

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.

Question

The terms of a partnership
agreement provide that one of
the partners is to receive a
salary allowance of P30,000,
plus a bonus of 20 percent of
income after deduction of the
bonus and the salary
allowance. If income is
P150,000, the bonus should
be: *

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