Great and Happy pooled their resources to form a partnership on April 1, 2021. Great invested P200,000 while Happy invested P300,000. They agreed to share profits and losses as follows: Partners to receive a monthly salary: Great - P25,000 and Happy P15,000. Partners to receive interest based on ending capital: Great - 5% and Happy - 10%. Happy, the managing partner, is to receive a bonus of 10% based on net income after salaries and interest. The remaining profit is to be divided based on the initial capital. During the year, Great and Happy withdrew cash for their personal use amounting to P5,000 and P10,000 respectively. The partnership had a net loss of P100,000 during the year. How much is the share of Great in the net loss?
Great and Happy pooled their resources to form a partnership on April 1, 2021. Great invested P200,000 while Happy invested P300,000. They agreed to share profits and losses as follows: Partners to receive a monthly salary: Great - P25,000 and Happy P15,000. Partners to receive interest based on ending capital: Great - 5% and Happy - 10%. Happy, the managing partner, is to receive a bonus of 10% based on net income after salaries and interest. The remaining profit is to be divided based on the initial capital. During the year, Great and Happy withdrew cash for their personal use amounting to P5,000 and P10,000 respectively. The partnership had a net loss of P100,000 during the year. How much is the share of Great in the net loss?
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 47P
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Great and Happy pooled their resources to form a partnership on April 1, 2021. Great invested P200,000 while Happy invested P300,000. They agreed to share profits and losses as follows:
Partners to receive a monthly salary: Great - P25,000 and Happy P15,000.
Partners to receive interest based on ending capital: Great - 5% and Happy - 10%.
Happy, the managing partner, is to receive a bonus of 10% based on net income after salaries and interest.
The remaining profit is to be divided based on the initial capital.
During the year, Great and Happy withdrew cash for their personal use amounting to P5,000 and P10,000 respectively. The partnership had a net loss of P100,000 during the year.
How much is the share of Great in the net loss?
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