Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Distribution of Profits and Losses Use the following information for the next 5 questions. SANTIAGO & SEBASTIEN. Santiago and Sebastien are partners in a business.

Distribution of Profits and Losses
Use the following information for the next 5 questions.
SANTIAGO & SEBASTIEN. Santiago and Sebastien are partners in a business. Santiagos original capital investment was P400,000 and Sebastiens was P600,000. They agreed to share profits and losses as follows:
1. If profit for the year was P500,000, what is the share of Santiago in the partnership profit?
2. If profit for the year was P300,000, what is the share of Sebastien in the partnership profit?
3. If losses for the year were P100,000, what is the share of Santiago in the partnership losses? Encode as a negative number if the final answer is a negative or a share in loss.
4. If profit for the year was P150,000, what is the share of Santiago in the partnership profit?
5. The terms of a partnership agreement provide that one of the partners is to receive a salary allowance of P30,000, plus a bonus of 20 percent of income after deduction of salary allowance. If net income is P150,000, how much is the bonus?
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

5th edition

9780470418239, 470239808, 9780470239803, 470418230, 978-1118128169

More Books

Students also viewed these Accounting questions