Accounting - 7 The partnership agreement of Carlo Liza and...

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Chapter 41 / Exercise 2
Business Law: Principles for Today's Commercial Environment
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7. The partnership agreement of Carlo, Liza and Mon provide for the following terms on distribution of profits and losses: Carlo is to receive 10% of the net income up to P1,000,000 and 20% on the amount of the excess. Liza and Mon each, are to receive 5% of the remaining income in excess of P1,500,000 after Carlo’s share as per above. The balance to be divided equally. For the year just ended, the partnership realized a net income of P2,500,000 before distribution to partners. The share of Carlo is a. P1,300,000 c. P1,080,000 e. P1,500,000 b. P1,000,000 d. P1,100,000
8. Ona, Zena and Heman are partners in an accounting firm. Their ending capital account balances were: Ona, P90,000; Zena, P110,000 and Heman, P50,000. They share profits and losses in a 4:4:2 ratio, after the following terms: Partner Heman is to receive a bonus of 10% of the net income after the bonus. Interest of 10% shall be paid on that portion of the partner’s capital in excess of P100,000. Salaries of P10,000 and P12,000 shall be paid to partners Ona and Heman, respectively.
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Business Law: Principles for Today's Commercial Environment
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Chapter 41 / Exercise 2
Business Law: Principles for Today's Commercial Environment
Jennings/Twomey
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