Partners AA and BB have profit and loss agreement with the following provisions: salaries of P30,000 and P45,000 for AA and BB, respectively: a bonus to AA of 10% of net income after salaries and bonus: and interest of 10% on average capital balances of P20,000 and P35,000 for AA and BB respectively. One-third of any remaining profits will be allocated to AA and the balance to BB. If the partnership had net income of P102,500, how much should be allocated to Partner AA?

Partners AA and BB have profit and loss agreement with the following provisions: salaries of P30,000 and P45,000 for AA and BB, respectively: a bonus to AA of 10% of net income after salaries and...

Partners AA and BB have profit and loss agreement with the following provisions: salaries of P30,000 and P45,000 for AA and BB, respectively: a bonus to AA of 10% of net income after salaries and bonus: and interest of 10% on average capital balances of P20,000 and P35,000 for AA and BB respectively. One-third of any remaining profits will be allocated to AA and the balance to BB. If the partnership had net income of P102,500, how much should be allocated to Partner AA?

May 02, 2022