Elisa Diaz and Ma. Concepcion Manalo formed a partnership, investing P330,000 and 4P110,000, respectively. Determine the partners' participation in the 2016 profit of 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. c. Interest at the rate of 8% 'allowed on original investments and the remainder divided in the ratio of 2:3. 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.
Elisa Diaz and Ma. Concepcion Manalo formed a partnership, investing P330,000 and 4P110,000, respectively. Determine the partners' participation in the 2016 profit of 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. c. Interest at the rate of 8% 'allowed on original investments and the remainder divided in the ratio of 2:3. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Answer d and e
Transcribed Image Text:Problem #3
Rules for the Distribution of Profits or Losses
Elisa Diaz and Ma. Concepcion Manalo formed a partnership, investing P330,000 and
Yy P110,000, respectively. Determine the partners' participation in the 2016 profit of
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.
c. Interest at the rate of 8% allowed on original investments and the remainder
divided in the ratio of 2:3.
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.
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