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So, Sa, and Se formed a joint venture. So has been designated as manager of the venture, of which he is receive a bonus of 15% of the profit after deduction of the bonus as an expense. The net profit after bonus has been agreed to be divided as follows: So, 25%; Sa, 40%; and Se, 35%.
After five months, the joint venture is terminated as of May 31, 2020. On this date, the trial balance kept by So contains the following balances
Requirements:
Problem a. How much is the bonus to So? Explain the answer.
Problem b. How much is the share of Sa in the venture profit? Explain the answer.
Problem c. How much is the cash settlement received by Sa and Se? Explain the answer.
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