Problem 33: Marie and Paz are partners in manufacturing business located in Manila. Their profit and loss agreement cont

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Problem 33 Marie And Paz Are Partners In Manufacturing Business Located In Manila Their Profit And Loss Agreement Cont 1 (180.54 KiB) Viewed 11 times

Problem 33: Marie and Paz are partners in manufacturing business located in Manila. Their profit and loss agreement contains the following provisions: 1. Salaries of P35,000 and P40,000 for Marie and Paz, respectively. A bonus to Marie equal to 10% of net income after the bonus 2. 3. Interest on weighted average capital at the rate of 8%. Annual drawings in excess of P20,000 are considered to be a reduction of capital for purposes of this calculation. 4. Profit and loss percentages of 40% and 60% for Marie and Paz, respectively Capital and drawing activity of the partners for the year 20x1 are as follows: Marie 120,000 Paz 60,000 Beginning balance 20,000 April 1. June 1. (15,000) (20,000) Sept 1. 30,000 Nov 1. (15,000) 40,000 Assuming net income for 20x1 of P132,000, how much profit should be allocated to each partner? c. P65,747; P66,253 a. P69,747; P62,253 b. P70,747; P61,253 d. P60,000; P60,000 greement of Rodriguez and Padilla oui 1