Profit Distribution. Almazar and Viray are partners in a business. Almazar's original capital contribution was P400,000 and Viray was P600,000. They agreed to share profits and losses as follows: AlmazarViray As Salaries P360,000P480,000 As interest on original Capital 10%10% Remaining profit or losses 2/31/3 Calculated each partner's share of profits and losses, assuming: a. Profit P700,000 b. Loss P35,000

Almazar and Viray are partners Capital contribution of Almazar = P400000 Viray = P600000 Interest…

Answered: Profit Distribution.…

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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Profit Distribution.
Almazar and Viray are partners in a business. Almazar's original capital contribution
was P400,000 and Viray was P600,000. They agreed to share profits and losses as
follows:
		Almazar	Viray

	As Salaries	P360,000	P480,000
	As interest on original Capital	10%	10%
	Remaining profit or losses	2/3	1/3

Calculated each partner's share of profits and losses, assuming:

	a. Profit P700,000
	b. Loss P35,000

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