Brad, Johny, Tom are partners with capital balances of P40,000 P50,000, and P60,000 respectively. They share profits and losses in the ratio of 40:40:20, respectively. After one year, the operation resulted in a net profit of P20,000. Withdrawals made during the year are as follows: Brad - P10,000; Johny - P5,000; Tom - P15,000. Tom retired from the partnership and was paid P80,000 for his interest. Assuming no asset revaluation was recorded, the excess payment is a

A. bonus of P27,000 from the remaining partners

B. bonus of P27,000 to the remaining partners

C. bonus of P31,000 to the remaining partners

D. bonus of P31,000 to the retiring partners

 

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The detailed answer for the above question is provided below Answer C bonus of P31000 to the re... View the full answer