FF, GG and HH form a partnership and agree to maintain average investments of P2,500,000, P1,250,000, and P1,250,000, respectively. Interest on the excess or deficiency in a capital contribution is to be computed at 6% per annum. After the interest allowances, FF,GG, and HH are to share any balance in the ratio of 5:3:2. Average amounts invested during the first six months were as follows: FF, P3,000,000. GG, P1,375,000; and HH, P1,000,000. A loss from operations of P62,500 was incurred for the first six months. How is this loss distributed among the partners?
FF, GG and HH form a partnership and agree to maintain average investments of P2,500,000, P1,250,000, and P1,250,000, respectively. Interest on the excess or deficiency in a capital contribution is to be computed at 6% per annum. After the interest allowances, FF,GG, and HH are to share any balance in the ratio of 5:3:2. Average amounts invested during the first six months were as follows: FF, P3,000,000. GG, P1,375,000; and HH, P1,000,000. A loss from operations of P62,500 was incurred for the first six months. How is this loss distributed among the partners?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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FF, GG and HH form a partnership and agree to maintain average investments of P2,500,000, P1,250,000, and P1,250,000, respectively. Interest on the excess or deficiency in a capital contribution is to be computed at 6% per annum. After the interest allowances, FF,GG, and HH are to share any balance in the ratio of 5:3:2. Average amounts invested during the first six months were as follows: FF, P3,000,000. GG, P1,375,000; and HH, P1,000,000. A loss from operations of P62,500 was incurred for the first six months. How is this loss distributed among the partners?
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