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A and B's partnership agreement stipulates the following: Annual salary of P20,000 to A 10% bonus to A, based on profit after salaries and
A and B's partnership agreement stipulates the following: Annual salary of P20,000 to A 10% bonus to A, based on profit after salaries and bonus The balances are shared on 60:40 ratio. Requirement: If B's share in the partnership profit for the year is P32,000, how much is the partnership profit before salary and bonus? Amount being allocated Allocation: 1. Salaries 2. Bonus 3. Allocation of remaining profit As allocated A 20,000 2 3 B 32,000 32,000 Total 7 20,000 4 5 6
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1 Salaries Based on the partnership agreement A receives an annual salary of P20000 2 Bonus A is ent...
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Advanced Financial Accounting
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
10th edition
78025621, 978-0078025624
