User Account

All Pages

How much is the share of bb in the partnership profit

Assignment Help Accounting Basics
Reference no: EM133145867

Question - AA and BB have been partners for a decade. As of January 1, 2022, the capital balances of AA and BB are:

AA, capital P55,000

BB, capital 75,000

Partnership agreement provides for the following manner of profit distribution:

Annual salaries of P80,000 and P100,000 will be provided to AA and BB, respectively.

A bonus of 20% based on net income will be given to AA

30% of the remaining profit or loss is distributed to AA with the balance provided to BB

In 2022, the partnership reported net income of P250,000. On January 1, 2023, CC was admitted as a partner by investing P70,000 for a 25% interest in the capital of the partnership. The partners agreed that the plant assets of the partnership were to be increased by P30,000.

The profit and loss sharing agreement was revised to:

Annual salaries of P80,000, P100,000 and P70,000 will be provided to AA, BB and CC, respectively.

A bonus of 20% based on net income will be given to AA and a 5% bonus based on net income after A's bonus will be provided to CC

Any remaining profits or losses will be distributed as follows: 30% - AA, 45% - BB, 25% - CC.

The partnership generated net income of P400,000.

How much is the share of BB in the partnership profit for 2022?

Reference no: EM133145867

Questions Cloud

Prepare a flexible budget and compute the sales : Prepare a flexible budget and compute the sales and variable cost volume variances based on a comparison between the master budget and the flexible budget
What is the amount of dividends received : The board of directors declares and pays a $44500 dividend in 2019 and in 2020. What is the amount of dividends received by the common stockholders in 2020
What are the expected cash receipts for march : Sixty percent are paid in the month after the work is completed and 30% are paid in the second month. What are the expected cash receipts for March
What annual savings can aqua system expect : Aqua System Inc. expects to have $9,515,320 in credit sales during the coming year. What annual savings can Aqua System expect
How much is the share of bb in the partnership profit : The partnership generated net income of P400,000. How much is the share of BB in the partnership profit for 2022
What is the boat worth to fishermen corp today : f the boat was purchased, it is expected to receive $20,000 at the end of the first year, What is the boat worth to Fishermen Corp today
Prepare the Statement of Changes in Equity for Mongoose Ltd : Mongoose Ltd had the following balances on 1 July 2021: Prepare the Statement of Changes in Equity for Mongoose Ltd for the year ended 30 June 2022
What was the firm end-of-year cash balance : It earned $5 million in net income during the year but paid $800,000 in dividends to common shareholders. What was the firm end-of-year cash balance
How a community collectively perceives of an organization : How a community collectively perceives of an organization can significantly benefit or harm the organization. What do you believe are the most significant influ

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd