Exercise 3-1 (Division of Profit using Ratios) Borres, Buendia, and Bustos have capital balances of P250,000, P150,000 and P100,000, respeetively. Time devoted by the partners in the partnership follows: Borres Buendia Bustos three-fourths time one-fourth time one-half time Instructions: Determine the participation of the partners in the profit of P600,000 if profit is divided: 1. in the ratio of capital investments in the ratio of time devoted in the business 2.
Exercise 3-1 (Division of Profit using Ratios) Borres, Buendia, and Bustos have capital balances of P250,000, P150,000 and P100,000, respeetively. Time devoted by the partners in the partnership follows: Borres Buendia Bustos three-fourths time one-fourth time one-half time Instructions: Determine the participation of the partners in the profit of P600,000 if profit is divided: 1. in the ratio of capital investments in the ratio of time devoted in the business 2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 3-1 (Division of Profit using Ratios)
Borres, Buendia, and Bustos have capital balances of P250,000, P150,000 and P100,000,
respectively. Time devoted by the partners in the partnership follows:
Borres
three-fourths time
Buendia
one-fourth time
Bustos
one-half time
Instructions:
Determine the participation of the partners in the profit of P600,000 if
profit is divided:
1.
in the ratio of capital investments
in the ratio of time devoted in the business
2.
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