Determine the amount of bonus

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Question - A and B formed a Partnership on January 1, 2020. A contributed capital of P50,000, while B contributed capital of P30,000. The Partnership agreement provides for the following:

Capital accounts are to be credited annually with interest at 5% of the beginning capital.

Partner B is to be paid salary of P2,000 a month.

Partner B is to receive a bonus of 10% based on the net income.

The Partnership's income statement for the year ended is as follows:

Revenues P101,000

Expenses (including salary, interest, and bonus) 30,000

Net income 71,000

Required - Determine the amount of bonus.

Reference no: EM133067242

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