Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A, B, and C are partners in an accounting firm. Their capital account balances at year-end were A, P120,000; B, P140,000 and C, P80,000. They

A, B, and C are partners in an accounting firm. Their capital account balances at year-end were A, P120,000; B, P140,000 and C, P80,000. They share profits and losses on a 3:3:4, after the following special terms: 1. Partner C is to receive a bonus of 10% of net income after the bonus. 2. Interest of 10% shall be paid on that portion of a partners capital in excess of P100,000. 3. quarterly Salaries of P5,000, P5,000, and P6,000 shall be paid to partners A B & C, respectively. Assuming a net income of P66,000 for the year, the total profit share of partner C was?

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

Cost Accounting

Authors: Edward B. Deakin, Michael Maher

3rd Edition

0256069190, 978-0256069198

Students also viewed these Accounting questions