A, B, and C's partnership agreement requires the partners to maintain average investments P2,500,000, P1,250,000, and P1,250,000, respectively. Six percent (6%) interest per annum is to be computed on any excess or deficiency in the contributions. After the interest allowances, any remaining profit or loss is shared in the ratio of 5:3:2. Average amounts invested during the first six months were as follows: A, P3,000,000; B, P1,375,000; and C, P1,000,000. Loss of P62,500 was incurred for the first six months. How is the loss distributed among the partners? A В а. 12,500 b. 18,375 с. 21,875 d. 31,250 10,000 21,875 18,375 18,750 49,500 22,250 22,250 12,500

A, B, and C's partnership agreement requires the partners to maintain average investments P2,500,000, P1,250,000, and P1,250,000, respectively. Six percent (6%) interest per annum is to be computed on any excess or deficiency in the contributions. After the interest allowances, any remaining profit or loss is shared in the ratio of 5:3:2. Average amounts invested during the first six months were as follows: A, P3,000,000; B, P1,375,000; and C, P1,000,000. Loss of P62,500 was incurred for the first six months. How is the loss distributed among the partners? A В а. 12,500 b. 18,375 с. 21,875 d. 31,250 10,000 21,875 18,375 18,750 49,500 22,250 22,250 12,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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