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Q2 2 Gross and Net Earnings

The document presents an overview of gross and net earnings, including definitions and computations related to salary, wages, income, and benefits. It includes examples and exercises for calculating gross and net earnings based on various scenarios and deductions. Additionally, it provides formulas for determining total earnings, deductions, and net earnings, along with true or false questions for comprehension.

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Kiuanne Josh De Villa
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8 views16 pages

Q2 2 Gross and Net Earnings

The document presents an overview of gross and net earnings, including definitions and computations related to salary, wages, income, and benefits. It includes examples and exercises for calculating gross and net earnings based on various scenarios and deductions. Additionally, it provides formulas for determining total earnings, deductions, and net earnings, along with true or false questions for comprehension.

Uploaded by

Kiuanne Josh De Villa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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GROSS AND

NET
EARNINGS
PRESENTED BY: MARIBEL M. OLESCO
OJECTIVES:
1. Define salary, wage, income,
and benefits
2. Compute gross and net
earnings
3. Appreciate gross and net
ACTIVITY 1: Answer the
following problems in your
paper.
1. Sonny works at a furniture and earns a base salary of
P350 per week plus 6% commission on sales. What was
Sonny’s weekly gross salary if his total sales were P3,750?
2. Brian is a salesman for a wholesale computer parts
company without a base salary. He earns straight
commission at a rate of 4%. Last month his total sales is
P82,968.00. What was his gross monthly income last
month?
Preliminary Questions
What do you call the amount of money
that you receive every 15 and 30 day
th th

of the month if you are working in a


grocery store as a cashier? How is it
computed? What are the inclusions and
or exclusions in the amount that you
Let us try this simple situation of Mr. Santos.
For his salary in the previous month, Mr. Santos
received the payslip below:
EARNING

Basic: 14,850.4 PREV.OL/EL


Absences_BSC: : RLE-
3 ALW:
LA /SFA:
8,909.57 OTH-AL W/HON:
Other Earn: Prev.RLE:
ABS_Allows: Prev. Basic:

TTL: 2,887.50 Prev. LA/SFA:


Holiday Pay: 4,400.00
OL/EL: 9,900.01
Figure 1. Total Earnings

DEDUCTIO TOTAL EARNINGS :


NS 40,947.51
Tax Whld:
9,865.38
SSS Prem: 581.30
PhilHlth: 437.50
Pag-ibig: 100.00
SSS Ln: 692.17
Cash Adv:
Pagibig Ln:
Re_cont:

TOTAL DEDUCTIONS : 11,676.35


Figure 2. Total Deductions
NET PAY
Monthly net: 29,271.16
1st Half Net: 14, 635.58
summarize the computed
values
TOTAL EARNINGS P 40, 947.51
TOTAL P 11,676.35
DEDUCTIONS
MONTHLY NET P 29,271.16
1 HALF NET
ST
P 14, 635.58
2ND HALF NET P 14, 635.58
 You would notice that TOTAL EARNINGS less TOTAL
DEDUCTIONS will result to MONTHLY NET, that would
be,
 40, 947.51 – 11, 676.35 = 29, 271.16.
 Also, HALF NET is the result of MONTHLY NET divided
by TWO, that is,
 29, 271.16
 2 = P14,635.58
Let E be the total earnings, D be the total
deductions, and N be the net earnings.
 The equation
E =D+N
 holds for all non-negative numbers, E, N, and D.
Algebraic manipulation of this formula yields the
following formula:
N =E–D
D =E–N
Example 1:If E = P 21, 230.21 and D
= P 4, 871. 15, what is the value of N?
Solution:
We use the formula:
N = E – D.
So, we have,
N = 21, 230.21 – 4, 871.15 = 16, 359.06
Therefore, ₱16, 359.06 is the net earnings.
Example 2: If D = ₱ 15,622.40 and N = ₱
8,236.68, what would be the value of E?

Solution:
We will use the formula:
E = D + N
E = 15,622.40 + 8,236.68 = 23, 859.08
Therefore, ₱23,859.08 would be the
total earnings.
Example 3: Linda has a monthly net
amounting to ₱10,568.23. If she receives a total
deduction of ₱4,235.18, how much is her total
earnings?
Solution:
By using the formula, E = D + N, we
can have,
E = D + N = 4,235.18 + 10, 568.23 =
14, 803.41.
Thus, Linda’s total earnings is ₱ 14,
True or False: Write TRUE if that statement is
correct otherwise FALSE. Write your answer in a
clean sheet of paper.

1.Gross earnings is sometimes greater than net income.


2. The total deductions is always equal to the net earnings
3. Overtime pay is part of deductions.
4. The sum of deductions and the net pay is equals to the
total earnings.
5. If the total deduction is 0, then gross earning is equal to
net earnings.
Solve the following word problems.
Write your answer in a clean sheet of
paper.
Sarah receives a net earning
amounting to P17, 827.43. If she has
a total earning of P 21,924.13, how
much is her total deduction?
If E = P28,091.16 and N = 11,
213.00, what is the value of D?
Sandra earns P62,954 per
month. Determine the
following:Percentage Amount of
Deduction
Whld Tax 24%
SSS 1.4%
Philhealth 1.1%
SSS 1.4%
Pag-ibig 0.2%
Total

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