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Practice

Bunag, Belen, and Bustos are partners in an accounting firm who share profits and losses in a 4:4:2 ratio. Their year-end capital account balances were ₱180,000, ₱220,000, and ₱100,000 respectively. Bustos is entitled to a 10% bonus on profits after bonuses and Belen receives 10% interest on capital exceeding ₱200,000. Bunag and Bustos also receive salaries of ₱20,000 and ₱24,000 respectively. With total profits of ₱220,000, Bustos' profit share is ₱74,800.

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2K views2 pages

Practice

Bunag, Belen, and Bustos are partners in an accounting firm who share profits and losses in a 4:4:2 ratio. Their year-end capital account balances were ₱180,000, ₱220,000, and ₱100,000 respectively. Bustos is entitled to a 10% bonus on profits after bonuses and Belen receives 10% interest on capital exceeding ₱200,000. Bunag and Bustos also receive salaries of ₱20,000 and ₱24,000 respectively. With total profits of ₱220,000, Bustos' profit share is ₱74,800.

Uploaded by

spp
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
  • Financial Problem Overview: Describes a financial problem involving profit sharing among partners in an accounting firm, including details of their capital accounts and specific conditions affecting their profit shares.
  • Calculation Details: Presents detailed calculations and distributions of profits among partners based on the scenario described in the previous section, including shares, losses, and totals.

₱74,800

Bunag, Belen and Bustos are partners in an accounting firm. Their capital
account balances at year-end were ₱180,000, ₱220,000 and ₱100,000,
respectively. They share profits and losses on a [Link] ratio, after
considering the following terms:
A. Bustos is to receive a bonus of 10% of profit after bonus.
B. Interest of 10% shall be paid on that portion of a partner's capital in
excess of ₱200,000.
C. Salaries of ₱20,000 and ₱24,000 shall be paid to partner's Bunag and
Bustos, respectively
What is the total profit share of Bustos assuming the profit for the year is
₱220,000?
Bunag Belen Bustos Total
capital account balances at year-end 180000.00 220000.00 100000.00 500000.00
bonus of 10% of profit after bonus. 20000.00 20000.00
Interest of 10% in excess of ₱200,000 2000.00 2000.00
Salaries 20000.00 24000.00 44000.00
Remainder -138400.00 -138400.00 -69200.00 -346000.00
share profits and losses 61600.00 83600.00 74800.00 220000.00

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