AFAR 2 – PARTNERSHIP OPERATION

Problem 1: On October 31, 2021, Z and J formed a partnership by investing cash of 300,000 and 200,000, respectively. The
partners agreed to receive an annual salary allowance of 360,000 and to give Z a bonus of 20% of net income after partner’s
salaries, the bonus being treated as an expense. If the profits after salaries and bonus are to be divided equally, and the profits on
December 31, 2021 after partners’ salaries but before bonus of Z is 360,000, how much is the share of Z in the profit?

270,000