Reference no: EM132936039

The partners of MMK Partnership are Mara, Mira and Kara. During the current year, their average capital balances are as follows:

Mara - P 140,000;

Mira - P 100,000;

Kara - P 120,000.

The articles of partnership provided the following terms:

1. Annual interest of 5% on their average capital balances.

2. Salary allowances as follows: Mara - P 40,000 and Mira - P 60,000.

3. Mira shall receive bonus of 20% of income in excess of P25,000 after partner's interest and Salary allowances.

4. Residual profits shall be divided in the ratio of 2:2:6 to Mara, Mira and Kara.

Problem 1: How much will Mira receive if the net income earned is P 155,000?