2021/2/17 20:27 Rules for the Distribution of Profits or Losses Elisa Diaz and Ma. Concepcion Manalo formed a partnership, investing P330,000 and P110,000, respectively. Determine the partners' participation in the 2016 profit P420,000 under each of the following independent assumptions: a. No agreement concerning division of profit. b. Divided in the ratio of original capital investment. Interest at the rate of 8% allowed on original investments and the remainder divided in the ratio of 2:3. C.
2021/2/17 20:27 Rules for the Distribution of Profits or Losses Elisa Diaz and Ma. Concepcion Manalo formed a partnership, investing P330,000 and P110,000, respectively. Determine the partners' participation in the 2016 profit P420,000 under each of the following independent assumptions: a. No agreement concerning division of profit. b. Divided in the ratio of original capital investment. Interest at the rate of 8% allowed on original investments and the remainder divided in the ratio of 2:3. C.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Elisa Diaz and Ma. Concepcion Manalo partnership solution
Transcribed Image Text:2021/2/17 20:27
Rules for the Distribution of Profits or Losses
Elisa Diaz and Ma. Concepcion Manalo formed a partnership, investing P330,000 and
P110,000, respectively. Determine the partners' participation in the 2016 profit o
P420,000 under each of the following independent assumptions:
a.
No agreement concerning division of profit.
b. Divided in the ratio of original capital investment.
Interest at the rate of 8% allowed on original investments and the remainder
divided in the ratio of 2:3.
C.
d. Salary allowances of P50,000 and P70,000, respectively, and the balance to be
divided equally.
e. Allowance of interest at the rate of 8% on original investments, salary allowances of
P50,000 and P70,000, respectively, and the remainder to be divided equally.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education