Question
On January 1, 2010, Sonia, Celia, Nona and Zita formed Zubuan Trading Co., a partnership, with contributions asfollows: Sonia, P 50,000; Celia, P 25,000; Nona,
On January 1, 2010, Sonia, Celia, Nona and Zita formed Zubuan Trading Co., a partnership, with contributions asfollows: Sonia, P 50,000; Celia, P 25,000; Nona, P 25,000 and Zita, P 20,000. The partnership contract provided that each partner shall receive a 5% interest on contributed capital, and that Sonia and Celia shall receive salaries of P 5,000 and P3,000, respectively. The contract also provided that Nona shall receive a minimum of P 2,500 per annum, and Zita a minimum of P6,000 per annum, which is inclusive of amounts representing interest and share of remaining profits. The balance of theprofits shall be distributed to Sonia, Celia, Nona and Zita in a ratio of 3:3:2:2. What amount must be earned by the partnership, before any charge for interest and salaries, so that Sonia may receive an aggregate of P 12,500 including interest, salary and share of profits?
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