Directions: Determine the partners' share in profit or loss for each of the following situation: Pozon and Digao established a general profes cional partnership by investing P200,000 and P350,000, respectively. Loss is P330,000 and the partners have no written partnership agreement. b. Profit is P330,000 and the partnership agreement states that the partners share profits or losses on the basis of their capitał contributions c. Profit is 625,000. The first 300,000 is shared on the basis of capital contribution. The next 225,000 is based on partner's service, with Pozon receiving 30% and Digao receiving 70%. The remainder is shared equally. a.
Directions: Determine the partners' share in profit or loss for each of the following situation: Pozon and Digao established a general profes cional partnership by investing P200,000 and P350,000, respectively. Loss is P330,000 and the partners have no written partnership agreement. b. Profit is P330,000 and the partnership agreement states that the partners share profits or losses on the basis of their capitał contributions c. Profit is 625,000. The first 300,000 is shared on the basis of capital contribution. The next 225,000 is based on partner's service, with Pozon receiving 30% and Digao receiving 70%. The remainder is shared equally. a.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Solve and show the complete solution of the following.
Transcribed Image Text:Directions: Determine the partners' share in profit or loss for each of the following situation:
Pozon and Digao established a general profes cional partnership by investing P200,000 and P350,000,
respectively.
a. Loss is P330,000 and the partners have no written partnership agreement.
b. Profit is P330,000 and the partnership agreement states that the partners share profits or losses
on the basis of their capital contributions
c. Profit is 625,000. The first 300,000 is shared on the basis of capital contribution. The next
225,000 is based on partner's service, with Pozon receiving 30% and Digao receiving 70%. The
remainder is shared equally.
5
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