Question
A and B formed a partnership in 2020 and made the following investments and capital withdrawals during the year: DATE A investments A withdrawals B
A and B formed a partnership in 2020 and made the following investments and capital withdrawals during the year:
DATE | A investments | A withdrawals | B investments | B withdrawals |
March 1 | P30,000 | P20,000 | ||
June 1 | P10,000 | P10,000 | ||
August 1 | 20,000 | 2,000 | ||
December 1 | 5,000 |
The partnership's profit and loss agreement provides for salary of which P30,000 was paid to each partner for 2020. A is to receive a bonus of 10% on net income after salaries and bonus. The partners are also to receive interest of 8% on average capital balances affected by both investments and drawings. Any remaining profits are to be allocated equally among partners.
Assuming net income of P60,000, determine how the income would be allocated among the partners:
Group of answer choices
A, P30,684;B, P29,316
A, P33,537; B, P26,463
A,P31,138; B, P28,862
A, P30,633; B, P29,367
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