Partnership Operations
Sample Problems
Problem 1
Solution:
Cortez Padua Valmoria Total
Salaries 40,00 40,000 80,000
Bonus 1,000 1,000
Remainder – 3:4:3 3,000 4,000 3,000 10,000
Profit 43,000 44,000 4,000 91,000
Bonus = Bonus rate x (Income before income tax – Salaries – Bonus)
Bonus = .10 x (91,000 – 80,000 – Bonus)
B = .10 x (11,000 – Bonus)
B = 1,100 - .10B
B + .10B = 1,100
1.10B = 1,100
1.10B/1.10 = 1,100/1.10
Bonus = ₱ 1,000
Problem 2
Solution:
Mariano Ellen Cassandra Total
Salaries 1,250 1,250 2,500
Interest 1,500 1,187.50 1,062.50 3,750
Bonus 8,250 8,250
Remainder (25%:35%:40%) 13,750 19,250 22,000 55,000
Profit 24,750 21,687.50 23,062.50 69,500
Bonus = Bonus rate x (Income before income tax – Salaries – Interest – Bonus)
Bonus = .15 x (69,500 – 2,500 – 3,750 – Bonus)
B = .15 x (63,250 – Bonus)
B = 9,487.50 - .15B
B + .15B = 9,487.50
1.15B = 9,487.50
1.15B/1.15 = 1,100/1.15
Bonus = ₱ 8,250
