Final answer:
The partnership profit can be calculated by subtracting the cost of sales, operating expenses, partners' salaries, interest paid to banks, and partners' withdrawals from the sales. The profit for this partnership is P5,000.
Step-by-step explanation:
To calculate the partnership profit, we first need to determine the business's net income, which is sales minus the cost of sales and operating expenses. After that, to find the partnership profit, we subtract any other expenses that do not contribute to the operations, such as partners' salaries, interest paid to banks, and partners' withdrawals. So, the calculation would be
- Sales: P70,000
- Cost of Sales: P40,000
- Operating Expenses: P10,000
- Partners' Salaries: P13,000
- Interest Paid to Banks: P2,000
- Partners' Withdrawals: P8,000
Using the formula Profit = Sales - (Cost of Sales + Operating Expenses + Partners' Salaries + Interest + Withdrawals), we get:
Profit = P70,000 - (P40,000 + P10,000 + P13,000 + P2,000 + P8,000) = P5,000.