Dada and Mama, had capital accounts in $2020$ as follows:

Mama and Dada received a monthly salary of P$2,000$ and P$1,000.$

Dada receives a $20\%$ bonus based on income after salaries, interest but before bonus.

Interest is $5\%$ of their capital balances.

The remainder shall be allocated based on ending capital balances if negative while it shall be based on average

capital balances if positive $($Use two decimal places$).$

Page $6$ of $13$

ACC$102$

FUNDAMENTALS OF ACCOUNTING PART II

BSBA FM

What is the average capital balance of Mama?

a$.20,000$

b$.40,000$

c$.41,266$

d$.58,733$

What is the average capital balance of Dada?

a$.20,000$

b$.40,000$

c$.41,266$

d$.58,733$

If the partnership reports net income of $100,000$ in $2020$ before salaries, interest and bonus, what is the

share of Dada if salaries and interests are treated as allocation of net income?

a$.41,266$

b$.58,733$

c$.80,500$

d$.94,300$