Exercise 3-8. Distribution of Net Income to partners On March 1, 2023 Glenda and Harry formed GH Partnership respectively. Glenda is appointed as the managing partner. with initial investment of P800,000 and P1,200,000, The articles of co-partnership provides that profit or loss shall be distributed accordingly: 10% interest on original capital contribution ratio. . Monthly salary of P10,000 and P5,000 respectively for Glenda and Harry. . Glenda shall be entitled to bonus equivalent to 10% of net income after interest, and salary. ● The remainder shall be distributed in ratio of 4:6 for Glenda and Harry, respectively. For the year ended December 31, 2023, the partnership reported net income of P1,000,000. Required: Compute for the share in net income of Glenda for the year ended December 31, 2023.
Exercise 3-8. Distribution of Net Income to partners On March 1, 2023 Glenda and Harry formed GH Partnership respectively. Glenda is appointed as the managing partner. with initial investment of P800,000 and P1,200,000, The articles of co-partnership provides that profit or loss shall be distributed accordingly: 10% interest on original capital contribution ratio. . Monthly salary of P10,000 and P5,000 respectively for Glenda and Harry. . Glenda shall be entitled to bonus equivalent to 10% of net income after interest, and salary. ● The remainder shall be distributed in ratio of 4:6 for Glenda and Harry, respectively. For the year ended December 31, 2023, the partnership reported net income of P1,000,000. Required: Compute for the share in net income of Glenda for the year ended December 31, 2023.
Financial Accounting: The Impact on Decision Makers
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Author:Gary A. Porter, Curtis L. Norton
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Chapter11: Stockholders' Equity
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Transcribed Image Text:Exercise 3-8. Distribution of Net Income to partners
On March 1, 2023 Glenda and Harry formed GH Partnership
with initial investment of P800,000 and P1,200,000,
respectively. Glenda is appointed as the managing partner.
The articles of co-partnership provides that profit or loss shall
be distributed accordingly:
10% interest on original capital contribution ratio.
Monthly salary of P10,000 and P5,000 respectively for
Glenda and Harry.
. Glenda shall be entitled to bonus equivalent to 10% of
net income after interest, and salary.
The remainder shall be distributed in ratio of 4:6 for
Glenda and Harry, respectively.
●
For the year ended December 31, 2023, the partnership reported
net income of P1,000,000.
Required: Compute for the share in net income of Glenda for
the year
ended December 31, 2023.
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