Reference no: EM131208587
Q1. Partners A, B and C are contemplating using the following profit distribution plan:
Salary is to be given to A in the amount of P60,000, with the remainder in an equal rates to all partners. A is guaranteed a minimum profit share of P100,000.
a) Profit for the first year is P240,000
b) Profit for the second year is P150,000.
Compute for the profit share of partners B and C in both years.
Q2. Beth, Luz and Ana divide profit and loss in the ratio of 2:1:1 respectively, after giving a monthly salary of P10,000 to each partner and bonus of 20% to Beth. Determine the share of each partner and record the distribution on the following independent situations:
a) Net income earned was P480,000 and bonus is based on the income before salaries and bonus.
b) Net income earned was P480,000 and bonus is based on the income after salaries and bonus.
c) Net loss for the year was P480,00 and bonus based on the net income before salaries and bonus.
Q3. Refer to Q2.
a) If Luz received a profit share of P50,000 after six months, how much did Beth receive? Assume bonus is based on net income before bonus.
b) id Luz received a profit share of P50,000 after one year, how much did Beth receive? Bonus is based on the net income after bonus.
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