Problem #13 Distribution of Profits or Losses Based on Partner's Agreement Ancheta, Sinad, and Piator each receive a p100,000 salary, as well as 10% interest on their respective average investments of P600,000, P1,000,000, and P200,000. They share remaining profits and losses in a 2:1:3 ratio, respectively. By how much would Sinad's account increase or decrease (indicate a decrease by placing parentheses), assuming a: (a) profit of P720,000, (b) profit of P360,000, or (c) loss pf P360,000. In addtion, calculate (d) Sinad's share of a p2,700,000 profit if profit or loss distributions were based instead solely on the ratio of average capital investments.
Problem #13 Distribution of Profits or Losses Based on Partner's Agreement Ancheta, Sinad, and Piator each receive a p100,000 salary, as well as 10% interest on their respective average investments of P600,000, P1,000,000, and P200,000. They share remaining profits and losses in a 2:1:3 ratio, respectively. By how much would Sinad's account increase or decrease (indicate a decrease by placing parentheses), assuming a: (a) profit of P720,000, (b) profit of P360,000, or (c) loss pf P360,000. In addtion, calculate (d) Sinad's share of a p2,700,000 profit if profit or loss distributions were based instead solely on the ratio of average capital investments.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accounting
Transcribed Image Text:Problem #13
Distribution of Profits or Losses Based on Partner's Agreement
Ancheta, Sinad, and Piator each receive a p100,000 salary, as well as 10% interest on their
respective average investments of P600,000, P1,000,000, and P200,000. They share remaining
profits and losses in a 2:1:3 ratio, respectively.
By how much would Sinad's account increase or decrease (indicate a decrease by placing parentheses),
assuming a: (a) profit of P720,000, (b) profit of P360,000, or (c) loss pf P360,000. In addtion, calculate
(d) Sinad's share of a p2,700,000 profit if profit or loss distributions were based instead solely on the ratio
of average capital investments.
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