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Gabriel and Harry are partners in manufacturing business located in Quezon City. The profit and...

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Accounting

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Gabriel and Harry are partners in manufacturing business located in Quezon City. The profit and loss agreement contains the following provisions: 1. Salaries of P35,000 and P40,000 for Gabriel and Harry, respectively 2. A bonus to Gabriel equal to 10% of net income after the bonus 3. Interest on weighted average capital at the rate of 8%. Annual drawings in excess of P20,000 are considered to be a reduction of capital for purposes of this calculation. 4. Profit and loss percentages of 40% and 60% for Gabriel and Harry, respectively. Assuming the net income for 2023 is P132,000, how much profit should be allocated to each partner? Gabriel and Harry are partners in manufacturing business located in Quezon City. The profit and loss agreement contains the following provisions: 1. Salaries of P35,000 and P40,000 for Gabriel and Harry, respectively 2. A bonus to Gabriel equal to 10% of net income after the bonus 3. Interest on weighted average capital at the rate of 8%. Annual drawings in excess of P20,000 are considered to be a reduction of capital for purposes of this calculation. 4. Profit and loss percentages of 40% and 60% for Gabriel and Harry, respectively. Assuming the net income for 2023 is P132,000, how much profit should be allocated to each partner

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