EXERCISE 6-9. Problem Solving 1. Igor, Jacky, and King formed a partnership with (1) Igor as a capitalist partner contributing P300,000 cash and equipment valued at P150,000; (2) Jacky as a capitalist-industrial partner contributing furniture valued at P90,000; and (3) King as an industrial partner. The partnership agreement provides for profit distribution as follows: • Monthly salary of P6,000 to Igor. • 12% interest on their original capital contribution. • Remainder at 40%, 35%, and 25% to Igor, Jacky, and King, respectively. You are required to show supporting computations to determine the share of each partner in the profit (loss), assuming: 1. The partnership was able to generate a net income of P260,000 for the year. 2. The partnership was able to incur a net loss of P50,000 for the year.

EXERCISE 6-9. Problem Solving 1. Igor, Jacky, and King formed a partnership with (1) Igor as a capitalist partner contributing P300,000 cash and equipment valued at P150,000; (2) Jacky as a capitalist-industrial partner contributing furniture valued at P90,000; and (3) King as an industrial partner. The partnership agreement provides for profit distribution as follows: • Monthly salary of P6,000 to Igor. • 12% interest on their original capital contribution. • Remainder at 40%, 35%, and 25% to Igor, Jacky, and King, respectively. You are required to show supporting computations to determine the share of each partner in the profit (loss), assuming: 1. The partnership was able to generate a net income of P260,000 for the year. 2. The partnership was able to incur a net loss of P50,000 for the year.

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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Direction: Answer the following questions in problem 3: [6,7,8]