Aristorenas, Soriano and Filamor have the following profit and loss agreement:

 Partners Aristorenas and Soriano will receive salaries of P 40,000 each.

 Partner Filamor will get a bonus of 10% of net income before bonus.
 Remaining profits are shared by Aristorenas, Soriano and Filamor in the ratio of 3:4:3,
respectively.

1. The partnership had a net profit of P 95,000.

ARISTORENAS SORIANO FILAMOR TOTAL
Salaries allowed to partners 40,000 40,000 - 80,000
Bonus (10%) - - 9,500 9,500
95000*10%
Balance: (3:4:3) 5,500
A:5,500*3/10 1,650
S:5,500*4/10 2,200
F:5,500*3/10 1,650

41,650 42,200 11,150 95,000

2. The partnership had a net profit of P 75,000.

ARISTORENAS SORIANO FILAMOR TOTAL
Salaries allowed to partners 40,000 40,000 - 80,000
Bonus (10%) - - 7,500 7,500
75000*10%
Balance: (3:4:3) (12,500)
A(12,500)*3/10 (3,750)
S:(12,500)*4/10 (5,000)
F:(12,500)*3/10 (3,750)

36,250 35,000 3,750 75,000

3. Ken and Barbie are partners in an accounting firm. Their capital account balances at year-end were
Ken P 145,000 and Barbie P 105,000. They share profits and losses in a 6:4 ratios; after the following
special terms:
 Partner Barbie is to receive a bonus of 10% of the net income after bonus.
 Interest of 10% shall be paid on that portion of a partner’s capital in excess of
P100,000.
 Salaries of P 10,000 and P 12,000 shall be paid to Ken and Barbie respectively.
Assuming a net income of P 44,000 for the year.

KEN BARBIE TOTAL

Bonus (10%): 4,000 4,000
(44,000 / 110%)*10%
Interest allowed to partners (10%):
Ken: (145,000 – 100,000) * 10% 4,500
Barbie: (105,000 – 100,000) * 10% 500 5,000
Salaries allowed to partners: 10,000 12,000 22,000
Balance: (6:4) 13,000
K:13,000*6/10 7,800
B:13,000*4/10 5,200

22,300 21,700 44,000

Bonus = Profit * Bonus rate

Bonus = 40,000 *20%

Bonus = [Profit / (100% + Bonus rate)] * Bonus rate

Bonus = [40,000 / (100%+20%)]*20%

= (40,000/1.2)*.2