A and B formed a Partnership on January 1, 2020. Partner A’s contributed capital amounted to P40,000, while partner B’s contributed capital amounted to P20,000. The Partnership agreement provides for the following:Capital accounts are to be credited annually with interest at 5% of the beginning capital.Partner B is to be paid salary of P6,000 quarterly.Partner B is to receive a bonus of 10% based on the net incomeThe Partnership's income statement for the year ended is as follows:Revenues, P105,000Expenses (including salary, interest, and bonus), 30,000Net income, 75,000What is partner's B 2020 bonus?Group of answer choices9,2737,5009,33311,333

A partnership is a proper association through extra events to manipulate and perform an enterprise…

Answered: A and B formed a Partnership on January…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...

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A and B formed a Partnership on January 1, 2020. Partner A’s contributed capital amounted to P40,000, while partner B’s contributed capital amounted to P20,000. The Partnership agreement provides for the following:

Capital accounts are to be credited annually with interest at 5% of the beginning capital.
Partner B is to be paid salary of P6,000 quarterly.
Partner B is to receive a bonus of 10% based on the net income

The Partnership's income statement for the year ended is as follows:

Revenues, P105,000
Expenses (including salary, interest, and bonus), 30,000
Net income, 75,000

What is partner's B 2020 bonus?

Group of answer choices

9,273

7,500

9,333

11,333

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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