Question
A and B are partners operating a chain of tailoring shops. The partnership agreement provides for the following. Monthly salaries to of P10,000 and P12,000
A and B are partners operating a chain of tailoring shops. The partnership agreement provides for the
following.
Monthly salaries to of P10,000 and P12,000 to A and B respectively
8% interest on original capital contribution.
5% bonus to A computed based on net income after deducting salaries and interest on capital.
d. Balance according to onginal capital ratio.
The Income Summary account for 2022 before any distribution to the partners shows a credit balance of P420,000. Original capital contributions of A and B are P800,000 and P600,000, respectively. How much is the share of A in the result of business operation?
A and B are partners operating a chain of tailoring shops. The partnership agreement provides for the
following.
Monthly salaries to of P10,000 and P12,000 to A and B respectively
8% interest on original capital contribution.
5% bonus to A computed based on net income after deducting salaries and interest on capital.
d. Balance according to onginal capital ratio.
The Income Summary account for 2022 before any distribution to the partners shows a credit balance of P420,000. Original capital contributions of A and B are P800,000 and P600,000, respectively. How much is the share of A in the result of business operation?
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