AA and BB are partners with capital accounts that had the following transactions during 2022:

	AA		BB
	Debit	Credit	Debit	Credit
Beginning balance, January 1		P270,000		P280,000
February 28	P80,000
March 1				120,000
April 30		160,000
June 1			P100,000
August 1				140,000
September 30		40,000
October 31			40,000

The partnership agreement provides for the following:

1. The interest of 9% is to be provided to AA
2. Salaries of P4,000 is to be given to BB per quarter
3. A bonus of 25% is to be given to AA based on net income after interest and salaries
4. The remaining balance is to be allocated on a ratio of 40:60.

The income summary account has a credit balance of P1,050,000 before profit distribution. BB has a Drawing account amounting to P40,000 which is a withdrawal made by BB in anticipation of future profits on July 1, 2022.

How much is the share of AA in the partnership profits for 2022?

Answer rating: 100% (QA)

the share of AA in the partnership profits for 2022 P581660 Calculated as Weight... View the full answer