Solution-Prepare a schedule to allocate net income

Prepare a schedule to allocate net income

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Question - The net income of A and B Partnership for 20x4 amounted to P504,000. A, is the managing partner. Assume that the partners agreed on the allocation of net income as follows:

Bonus of 20% to A;

Salaries to A, P48,000 and B, P72,000;

Interest on average capital balances - A, P14,400 and B, P9,600;

Residual balance in net income be allocated to A and B in the ratio of 2:1 ratio.

Required - Prepare a schedule to allocate net income, assuming: 1. Bonus is based on net income after interest but before bonus and salaries. 2. Bonus is based on net income after bonus but before interest and salaries. 3. Bonus is based on net income after interest, bonus and salaries.

Reference no: EM133172920

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Prepare a schedule to allocate net income

Reference no: EM133172920

Reference no: EM133172920

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