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please answer the 2 questions thankyou PROBLEM I: Amir and Benz formed a partnership on January 1, 2019. On this date, Amir contributed capital of
please answer the 2 questions thankyou
PROBLEM I: Amir and Benz formed a partnership on January 1, 2019. On this date, Amir contributed capital of P 600,000. On the other hand, Benz contributed no capital because he will manage the firm full time. The partnership agreement provides for the following: a.) Capital accounts are to be credited annually with interest at 5% of the beginning capital. b.) Benz is to be paid a salary of P 5,000 per month. c.) Benz is to receive a bonus of 20% of income computed before interest, salaries and bonus are deducted. d.) Profits are to be divided between Amir and Benz in the ratio of 7:3. There are no withdrawals by either partner during the year. The partnership income statement contains the following: Revenues P 1,020,000 Expenses ( including salary, interest and bonus) 540,000 Net profit P480,000 1.) How much is the bonus to Benz? 2.) What would be the equity balance of Amir at year end? PROBLEM 2: In its first year of operations, R and Company, a partnership made a profit of P 270,000, before providing for salaries of P 75,000 and P 60,000 per annum for Richmond and Samuel, respectively as stipulated in the partnership agreement. Capital contributions are as follows: Richmond P 45,000 30,000 Samuel Tyron Total 15,000 P 90,000 Assume that no profit or loss ratios are provided in the partnership agreement and that there has been no change in the capital contributions during the year, what would be the respective share of Richmond, Samuel and Tyron in the profitStep by Step Solution
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