Professional Documents
Culture Documents
Len May
Cash 10,000,000 20,000,000
Accounts Receivable 20,000,000 30,000,000
Inventories 70,000,000 40,000,000
Property, plant and
50,000,000 10,000,000
equipment
Accounts payable 40,000,000 20,000,000
Notes payable(Len 10%,May
30,000,000 50,000,000
5%)
Capital 80,000,000 30,000,000
Problem 1
On January 1, 2020, Alabo and Hok formed Notpa Partnership and the
articles of co-partnership provides that profit or loss shall be
distributed accordingly:
Problem 2
Problem 3
Partners A and B have profit and loss agreement with the following:
salaries P90,000 and P135,000 for A and B, respectively; a bonus
to A of 10% of net income after salaries; an interest of 10% on
average capital balances of P60,000 and P105,000 for A and B,
respectively. One-third of any remaining profits will be allocated
to A and the balance to B.
END