Question
The partnership agreement of JJ, KK, and LL provides for the annual allocation of the business's profit or loss in the following sequence: JJ, the
The partnership agreement of JJ, KK, and LL provides for the annual allocation of the business's profit or loss in the following sequence:
JJ, the managing partner, receives a bonus equal to 20 percent of the business's profit.
Each partner receives 15 percent interest on average capital investment.
Any residual profit or loss is divided equally.
The average capital investments for 20x4 were as follows:JJ, P100,000; KK, P200,000, and LL, P300,000. How much of the P90,000 partnership profit for 20x4 should be assigned to each partner?
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Managerial Accounting
Authors: Ray H Garrison, Alan Webb, Theresa Libby
11th Canadian Edition
1259275817, 978-1259275814
