REQUIREMENT: COMPUTE FOR RESPECTIVE SHARES OF PARTNERS IN THE PROFIT

PROBLEM 3: EXERCISES 1. Partners A and B share in profits and loss on a 70:30 ratio after salaries of P80,000 for A and P40,000 or B. The business earned profit of P180,000 before deduction or the salaries. 2. A and B's partnership agreement provi allowances of P160,000 for A and P80,0 for annual salary for B. Profits are 3. The partnership agreement of A and B stipulates the following: Annual salaries of P100,000 for A and P60,000 for B. 20% bonus to A, based on profit after salaries and bonus. Balance is shared equally. . The partnership earned profit of P520,000 before salaries and bonus. 4. A and B's partnership agreement provides for an annual salary allowance of P100,000 for A and 10% interest on the weighted average capital balance of B. The remainder is shared equally. During the period, the partnership earned profit of P200,000. B's capital account had a beginning balance of P120,000. B made additional investments of P60,000 on March 1, P40,000 on Sept. 30, and made drawings of P30,000 on Aug. 1 and P9,000 on Nov. 1