Activity 2: Skill-building Activities (with answer key) (18 mins + 2 mins checking)

Directions: Determine the partners’ share in profit or loss for each of the following situation:
Pozon and Digao established a general professional partnership by investing P200,000 and
P350,000,
respectively.
a. Loss is P330,000 and the partners have no written partnership agreement.
b. Profit is P330,000 and the partnership agreement states that the partners share profits or
losses
on the basis of their capital contributions
c. Profit is 625,000. The first 300,000 is shared on the basis of capital contribution. The next
225,000 is based on partner’s service, with Pozon receiving 30% and Digao receiving 70%. The
remainder is shared equally.

a. Pozon – (120,000); Digao – (210,000)

b. Pozon – 120,000; Digao – 210,000
c. Pozon – 226,591; Digao – 398,409

Activity 3: Check for Understanding (5 mins)

Direction: Determine how a profit of P105,000 would be allocated among partners.
AA, BB, CC and DD own a publishing company that they operate as partnership. The
partnership agreement includes the following:
• AA receives a salary of 20,000 and a bonus of 3% of income after all bonuses.
• BB receives a salary of 10,000 and a bonus of 2% of income after all bonuses.
• All partners are to receive 10% interest on their average capital.
The average capital balances are AA, 50,000; BB 45,000; CC, 20,000 and DD, 47,000. Any
remaining profits and losses are to be allocated equally among the partners.

The allocation of profits among partners is as follows:

AA – 41,450
BB – 29,950
CC – 15,450
DD – 18,150