Question
Problem 3-8 Bacani, Badeo, and Barte formed a partnership on January 1,2012, investing P1,000,000 P500,000 and P400,000, respectively. The partners agree to the following distribution
Problem 3-8 Bacani, Badeo, and Barte formed a partnership on January 1,2012, investing P1,000,000 P500,000 and P400,000, respectively. The partners agree to the following distribution of profits. 1. Annual salaries are to be allowed to partners as follows: Bacani-96,000, Badeo-120,000 and Barte-120,000.2. Interest is to be allowed on partners' capital as of the beginning of each year at the rate of 6%.3. Bacani, the managing partner, is to be allowed a bonus of 20% of the profit after treating as expenses the partners' salaries, interest and bonus. 4. Profits and losses after partners' salaries, interest and bonus are to be divided equally. Instructions: Prepare a statement of changes in partners' equity covering the three-year period ending December 31,2014 Problem 3-9 Instructions: 1. Determine the new profit and loss ratio to the old partners. 2. Prepare the schedule showing the division of the corrected partnership profit to the partners.
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