Distribution of Profits or Losses Based on Partners' Agreement Pasia, Te, and Ocenar each receive a P70,000 salary, as well as 15% interest on their respective average investments of P200,000, P100,000, and P400,000. If they share remaining profits and losses in a 4:3:2 ratio, respectively, by how much would Ocenar account increase or decrease (indicate a decrease by placing parentheses), assuming: (a) profit of P405,000, (b) profit of P270,000, and (c) loss of P315,000. In addition, calculate (d) Ocenar share of a P350,000 profits if profit and loss distributions were based instead solely on the ratio of average capital investments.

Distribution of Profits or Losses Based on Partners' Agreement Pasia, Te, and Ocenar each receive a P70,000 salary, as well as 15% interest on their respective average investments of P200,000, P100,000, and P400,000. If they share remaining profits and losses in a 4:3:2 ratio, respectively, by how much would Ocenar account increase or decrease (indicate a decrease by placing parentheses), assuming: (a) profit of P405,000, (b) profit of P270,000, and (c) loss of P315,000. In addition, calculate (d) Ocenar share of a P350,000 profits if profit and loss distributions were based instead solely on the ratio of average capital investments.

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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how do i calculate remainder to allocate?