FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT

Shaira Mae Obliga

BSA – 4th Year

Stephanie Calamba and Allan Brillantes decided to form a partnership. They agreed that
Calamba will invest P200000 and Brillantes, P300000. Calamba will devote full time to the
business, an Brillantes on part-time only. The following plans for the division of profits are being
considered:
a. Equal division.
b. In the ratio of original investment.
c. In the ratio of time devoted to the business.
d. Interest of 10% on original investments and the remainder in the ratio of 3:2.
e. Interest of 10% on original investments, salary allowances of P340000 to Calamba and
P170000 to Brillantes, and
the remainder equally.
f. Plan (e), except that Calamba is also to be allowed a bonus equal to 20% of the amount by
which profit exceeds
the salary allowances.

Required:
Determine the partners’ share in the profit or loss for each of the situations above assuming
(a)profit of P1500000 and(2) profit of P660000.

Profit: 1,500,000
Calamba Brillantes Total
Contribution 200,000 300,000 500,000
a. Profit 1:1 750,000 750,000 1,500,000
b. Profit 4:6 600,000 900,000 1,500,000
c. Profit 2:1 1,000,000 500,000 1,500,000
d. Interest 10% 20,000 30,000 50,000
FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT

Remainder 3:2 870,000 580,000 1,450,000

Total Profit 890,000 610,000 1,500,000
e. Interest 10% 20,000 30,000 50,000
Salary 340,000 170,000 510,000
Remainder 1:1 470,000 470,000 940,000
Total Profit 830,000 670,000 1,500,000
f. Interest 10% 20,000 30,000 50,000
Salary 340,000 170,000 510,000
Bonus 20% 198,000 198,000
Remainder 1:1 371,000 371,000 742,000
Total Profit 929,000 571,000 1,500,000

Profit: 660,000
Calamba Brillantes Total
Contribution 200,000 300,000 500,000
a. Profit 1:1 330,000 330,000 660,000
b. Profit 4:6 264,000 396,000 660,000
c. Profit 2:1 440 ,000 220,000 660,000
d. Interest 10% 20,000 30,000 50,000
Remainder 3:2 366,000 244,000 660,000
Total Profit 386,000 274,000 660,000
e. Interest 10% 20,000 30,000 50,000
Salary 340,000 170,000 510,000
Remainder 1:1 50,000 50,000 100,000
Total Profit 410,000 250,000 660,000
f. Interest 10% 20,000 30,000 50,000
Salary 340,000 170,000 510,000
Bonus 20% 198,000 198,000
FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT

Remainder 1:1 -49,000 -49,000 -98,000

Total Profit 509,000 151,000 660,000