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Question - Partners Samson and Delilah have profit and loss agreement with the following provisions: salaries of P90,000 and P135,000 for Samson and Delilah, respectively: a bonus to Samson of 10% of net income after salaries; and interest of 10% on average capital balances of P60,000 and P105,000 for Samson and Delilah, respectively. One-third of any remaining profits will be allocated to Samson and the balance to Delilah.
If the partnership had net income of P66,000, how much should be allocated to Partner Samson, assuming that the provisions of the profit and loss agreement are ranked by order of priority starting with 1) salaries, 2) interest, 3) bonus and up to the extent of the ranking only?
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