Question
1. Amy, Baby and Connie are partners in the accounting firm.Their capital account balances at year-end were Amy - P90,000; Baby - P110,000; Connie -
1. Amy, Baby and Connie are partners in the accounting firm.Their capital account balances at year-end were Amy - P90,000; Baby - P110,000; Connie - P50,000.They share profits and losses in a 4:4:2 ratios, after the following special terms:
Partner Connie is to receive a bonus of 10% of the net income after bonus;
Interest of 10% shall be paid on that portion of a partner's capital in excess of P100,000;
Salaries of P10,000 and P12,000 shall be paid to partners Amy and Connie, respectively.
Assuming a net income of P44,000 for the year, the total profit share of partner Connie would be?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started