Question
Partners investments on January 1, 2018: A - P 400,000 B - P 240,000 C - P 200,000 Addl Information: 1) Annual salaries for each
Partners investments on January 1, 2018: A - P 400,000 B - P 240,000 C - P 200,000 Addl Information: 1) Annual salaries for each partners: A - P48,000 B - P60,000 C - P 60,000 2) Interest will be given to each partners based on their capital balance at the beginning of each year at the rate of 6%. 3) A will be given a bonus of 20% of the net profit after partner's salaries, interest and bonus. 4) Profit and Loss will be divided equally after partners salaries, interest and bonus. Profit or loss before Interest Salaries and Bonus: 2018 Loss - P27,600 2019 Profit - P 120,000 2020 Profit - P 294,000 Cash Withdrawals A B C 2018 60,000 72,400 80,000 2019 69,800 81,600 88,600 2020 102,000 120,000 106,000 Required: Prepare a schedule of allocation of profit/loss for each year.
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