Annual salaries of P210,000 and P140,000 are provided to LDS andLRV, respectively, 12% interest is allowed on average capital, andany remainder is divided 2:3 to LDS and LRV, respectively.(d) The partnership contract does not have a provision for the division ofInterest of 10% is allowed on average capital and the resulting profitGeneral partners LDS and LRV formed the L&L Partnership on2018, with initial capital contributions of P420,000 and P700,000respectively.partners during 2018 are summarized as follows:4.January 2Additional investments and withdrawals made by theLDSLRVAdditional investments:May 1July 1P105,000P105,000Withdrawals:November 1105,000262,500The partnership's operations for the year 2018 resulted to a profit ofP735,000.Required:Determine the share of each partner in profit under each of the followleindependent assumptions:(a)profit or loss.(b)Profit is divided according to the partners' average capital.(c)or loss is divided equally.

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November 1 105,000 262,500 The partnership's operations for the year 2018 resulted to a profit P735,000. Required: Determine the share of each partner in profit under each of the followl independent assumptions: The partnership contract does not have a provision for the division profit or los. (a)

November 1 105,000 262,500 The partnership's operations for the year 2018 resulted to a profit P735,000. Required: Determine the share of each partner in profit under each of the followl independent assumptions: The partnership contract does not have a provision for the division profit or los. (a)

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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Question

Annual salaries of P210,000 and P140,000 are provided to LDS and
LRV, respectively, 12% interest is allowed on average capital, and
any remainder is divided 2:3 to LDS and LRV, respectively.
(d)

The partnership contract does not have a provision for the division of
Interest of 10% is allowed on average capital and the resulting profit
General partners LDS and LRV formed the L&L Partnership on
2018, with initial capital contributions of P420,000 and P700,000
respectively.
partners during 2018 are summarized as follows:
4.
January 2
Additional investments and withdrawals made by the
LDS
LRV
Additional investments:
May 1
July 1
P105,000
P105,000
Withdrawals:
November 1
105,000
262,500
The partnership's operations for the year 2018 resulted to a profit of
P735,000.
Required:
Determine the share of each partner in profit under each of the followle
independent assumptions:
(a)
profit or loss.
(b)
Profit is divided according to the partners' average capital.
(c)
or loss is divided equally.

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