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  • Problem #3 Rules For The Distribution of Profits or Losses

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    The document describes rules for distributing profits between two partners, Elisa Diaz and Ma. Concepcion Manalo, who contributed P330,000 and P110,000 respectively to a partnership. It analyzes five scenarios for distributing a P420,000 profit: dividing based on original investments, an 8% interest allowance on investments and the remainder divided 2:3, salary allowances of P50,000 and P70,000 with the remainder split equally, and an 8% interest allowance on investments plus salary allowances with the remainder split equally.

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    Accounting partnership

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    chapter_2__3.docx

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    The document describes rules for distributing profits between two partners, Elisa Diaz and Ma. Concepcion Manalo, who contributed P330,000 and P110,000 respectively to a partnership. It analyzes five scenarios for distributing a P420,000 profit: dividing based on original investments, an 8% interest allowance on investments and the remainder divided 2:3, salary allowances of P50,000 and P70,000 with the remainder split equally, and an 8% interest allowance on investments plus salary allowances with the remainder split equally.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    13 views1 page

    Problem #3 Rules For The Distribution of Profits or Losses

    Uploaded by

    Icantbelieve Whatidid
    The document describes rules for distributing profits between two partners, Elisa Diaz and Ma. Concepcion Manalo, who contributed P330,000 and P110,000 respectively to a partnership. It analyzes five scenarios for distributing a P420,000 profit: dividing based on original investments, an 8% interest allowance on investments and the remainder divided 2:3, salary allowances of P50,000 and P70,000 with the remainder split equally, and an 8% interest allowance on investments plus salary allowances with the remainder split equally.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Problem #3

    Rules for the Distribution of Profits or Losses

    Elisa Diaz and Ma. Concepcion Manalo formed a partnership, investing P330000 and P110000, respectively. Determine
    the partners’ participation in the 2018 profit of P420000, under each of the following independent assumptions:

    a. No agreement concerning division of profit.


    b. Divided in the ratio of original capital investment.
    c. Interest at the rate of 8% allowed on original investment and the remainder divided in the ratio of 2:3.
    d. Salary allowances of P50000 and P70000, respectively, and the balance to be divided equally.
    e. Allowance of interest at the rate of 8% on original investments, salary allowances of P50000 and P70000,
    respectively, and the remainder to be divided equally.

    Diaz Manalo Total


    330000.0 110000.0 440000.0
    contribution 0 0 0
    ratio 0.75 0.25

    315000.0 105000.0 420000.0


    profit 0 0 0

    interest 26400.00 8800.00 35200.00


    remainder 153920.0 230880.0 384800.0
    ratio 0 0 0

    120000.0
    salary 50000.00 70000.00 0
    150000.0 150000.0 300000.0
    remainder 0 0 0
    200000.0 220000.0 420000.0
    0 0 0

    divided 132400.0 132400.0 264800.0


    equally 0 0 0
    208800.0 211200.0 420000.0
    remainder 0 0 0

    This study source was downloaded by 100000849339372 from CourseHero.com on 06-30-2022 05:39:46 GMT -05:00

    https://www.coursehero.com/file/43982973/chapter-2-3docx/
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