question archive 31) On January 1
31) On January 1
Subject:AccountingPrice: Bought3
31) On January 1. 2012, A, B, C and D formed Bakya Trading Co., a partnership, with capital contributions as follows: A, P50.000; B, P25,000; C, P25,000; and D, P20,000. The partnership contract provided that each partner shall receive a 5% interest on contributed capital, and that A and B shall receive salaries of P5,000 and P3,000, respectively. The contract also provided that C shall receive a minimum of P2,500 per annum, and D a minimum of P6,000 per annum, which is inclusive of amounts representing interest and share of remaining profits. The balance of the profits shall be distributed to A, B. C, and D in a 3:3:2:2 ratio.
