Reference no: EM132962594

Problem - The following balance sheet was taken as of Sept 30, 2011 for ABC Partnership:

Assets Liabilities and Capital

Cash P80.000 Liabilities P200,000

Other Assets 520,000 A, Capital 100,000

B. Capital 180,000

C, Capital 120,000

Total 600,000 Total 600,000

Partners agreed the following distribution of profits:

6% interest on capital contribution;

Annual salaries of P20,000 each;

10% bonus to A after salaries, interest and bonus:

Remainder distributed 40%, 40% and 20% respectively.

The partnership uses a fiscal period starting October 1.

If C receives a total profit share of P20,000, compute the total net income earned by the business before salaries, interest and bonus for the period ending March 31. 2012.