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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The partnership agreement of EE, KK, and VV provides for the year-end allocation of net income in the following order: First, EE is to receive 10 percent of net income up to P100,000 and 20 percent over P100,000. Second, KK and VV each are to receive 5 percent of the remaining income over P150,000. The balance of income is to be allocated equally among the three partners. The partnership’s 2005 net income was P250,000 before any allocations to partners. What amount should be allocated to EE? I only need the solution, the correct answer is 108,000.
The partnership contract of the Ange, Bill, and Cayne Partnership provided for the division of net income or losses in the following manner: Bonus of 20% of income after bonus to Ange Interest at 10% on average capital account balances to each partner. Remaining income or loss, equally to each partner. Net income of the Partnership for 2021 was at P200,000 and the average capital account balances for that year were Ange, P200,000; Bill, P400,000; and Cayne, P600,000. How much of the P200,000 partnership profit for 2021 should be distributed to Ange? Group of answer choices 68,889 80,000 73,333 90,000
The net income of the Mohammad and Ahmed partnership is 250,000. The partnership agreement specifies that profits and losses will be shared equally after salary allowances of 200,000 (Mohammad) and 300,000 (Ahmed) have been allocated. At the beginning of the year, Mohammad's Capital account had a balance of 500,000 and Ahmed's Capital account had a balance of 650,000. What is the balance of Mohammad's Capital account at the ?end of the year after profits and losses have been distributed 825,000.a O 375,000.b O 625,000 .cO 575,000.d O
The given for B is 80,000
Terms of the partnership agreement: 1.1 The partners are entitled to a salary of R18 000 each per month. 1.2 Zozi and Sethu share profits in the ratio of 1:1 respectively. 2. Year-end adjustments: 2.1 An outstanding debt of R2 200 is irrecoverable and must be written off. The allowance for credit losses must be increased to R6 500. 2.2 An amount of R4 500 owed by a debtor was written off as irrecoverable during the year ended 29 February 20.1. The debtor has settled the amount previously written off in full on 25 February 20.2. This transaction is still to be recorded in the books of the business. 2.3 Depreciation for the year must still be provided as follows: Office equipment: 20% according to diminishing balance method. Vehicles: 15% according to straight-line method and have a R15 000 residual value. 2.4 Inventories on hand on 28 February 20.1: Merchandise R45 100 2.5 Only 65% of salaries were paid to partners during…
The partnership's profit for the year amounted to P440,000. Partner A is entitled to 10% before bonus. What is the bonus that Partner A will receive?
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The Articles of Partnership of Ange and Bill and the following provisions were stipulated: Annual salary of P50,000 each Bonus to Ange of 20% of the net income after partner’s salaries and bonus, the bonus being treated as an expense. Balance to be divided equally. The partnership reported a net income of P375,000 after partners’ salaries but before bonus. How much is the share of Bill in the profit? Group of answer choices 284,375 206,250 268,750 190,625