Compute the total net income earned

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Question - The following Balance Sheet was taken as of Sept. 30, 2018 for the SGC Partnership:

ASSETS Cash P80,000

Other Assets 520,000

LIABILITIES & CAPITAL

Liabilities P200,000

Startna, Capital 100,000

Gamena, Capital 180,000

Correct, Capital 120,000

Articles of Co-Partnership provides for the distribution of profits as follows: 8% annual interest on capital contribution; annual salaries of P20,000 each; 20% bonus to Gamena after salaries, interest and bonus; reminder distributed 30%, 30%, and 40%, respectively. The partnership uses a fiscal period starting October 1.

If Correct receives a total profit share of P14,000, compute the total net income earned by the business before salaries, interest and bonus for the period ending March 31, 2019.

Reference no: EM132960618

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