Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Craig Deegan

9th Edition

1743767382, 9781743767382

Students also viewed these Accounting questions

Question

How can a firm use pricing to change demand patterns?

Answered: 1 week ago

Question

=+a) What time series components do you observe in this series?

Answered: 1 week ago