Quinee, industrial partner, Reyna, capitalist partner, and Selena, capitalist-industrial partner, formed a partnership. Their capital balance as of year-end before profit sharing are as follows: Quinee-P60,000; Reyna- P80,000; Selena- P60,000. The partners agreed to share profit based on capital balances but did not agree on a loss sharing ratio. At the end of the year, a loss of P 40,000 was incurred by the partnership. How much loss is absorbed by Reyna?
Quinee, industrial partner, Reyna, capitalist partner, and Selena, capitalist-industrial partner, formed a partnership. Their capital balance as of year-end before profit sharing are as follows: Quinee-P60,000; Reyna- P80,000; Selena- P60,000. The partners agreed to share profit based on capital balances but did not agree on a loss sharing ratio. At the end of the year, a loss of P 40,000 was incurred by the partnership. How much loss is absorbed by Reyna?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Quinee, industrial partner, Reyna, capitalist partner, and Selena, capitalist-industrial partner, formed a partnership. Their capital balance as of year-end before profit sharing are as follows: Quinee-P60,000; Reyna- P80,000; Selena- P60,000. The partners agreed to share profit based on capital balances but did not agree on a loss sharing ratio. At the end of the year, a loss of P 40,000 was incurred by the partnership. How much loss is absorbed by Reyna?
A. P 16,000
B. P 17,143
C. P 13,333
D. P 22,857
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