The Peter and Paul Partnership provided compensation to the managing partner, Paul through a bonus of 15% of profit before salary and bonus; a monthly salary of P5,000 to each partner and a 3% interest based on the average capital of the partners.

Any remaining profit or loss is to be allocated based on their weighted average capital of P900,000 for Peter and P600,000 for Paul. During the year 2021, the partnership had profit of P225,000 before the bonus and salary allowances. How much was the credited interest of Peter and Paul?

Answer rating: 100% (QA)

First lets calculate the total compensation for Paul B... View the full answer