The Articles of Partnership of Ange and Bill and the following provisions were stipulated: Annual salary of P50,000 each Bonus to Ange of 20% of the net income after partner’s salaries and bonus, the bonus being treated as an expense. Balance to be divided equally. The partnership reported a net income of P375,000 after partners’ salaries but before bonus. How much is the share of Bill in the profit? Group of answer choices 284,375 206,250 268,750 190,625
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
The Articles of
- Annual salary of P50,000 each
- Bonus to Ange of 20% of the net income after partner’s salaries and bonus, the bonus being treated as an expense.
- Balance to be divided equally.
The partnership reported a net income of P375,000 after partners’ salaries but before bonus. How much is the share of Bill in the profit?
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