Partners X (Capital Balance - 350,000), Y (Capital Balance - 750,000), and Z (Capital Balance - 400,000) shares profits and losses in the ratio of 2:4:2, respectively. Both Partners W, and Z receives a monthly salary allowance of 10,000 each. Partners X, Y, and Z receives 10% interest based on their capital balance as of December 31. Partner W receives a 40% bonus (after deducting bonus, interest and salary) from net income in excess of 500,000, if net income after deducting the interest, bonus and salary exceeds 500,000. Total net income for 2022 is 940,000. What is the share of Partner Z in the net income?
Partners X (Capital Balance - 350,000), Y (Capital Balance - 750,000), and Z (Capital Balance - 400,000) shares profits and losses in the ratio of 2:4:2, respectively. Both Partners W, and Z receives a monthly salary allowance of 10,000 each. Partners X, Y, and Z receives 10% interest based on their capital balance as of December 31. Partner W receives a 40% bonus (after deducting bonus, interest and salary) from net income in excess of 500,000, if net income after deducting the interest, bonus and salary exceeds 500,000. Total net income for 2022 is 940,000. What is the share of Partner Z in the net income?
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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Partners X (Capital Balance - 350,000), Y (Capital Balance - 750,000), and Z (Capital Balance - 400,000) shares
What is the share of Partner Z in the net income?
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