Stephanie Calamba and Allan Brillantes decided to form a partnership. They agreed that Calamba will invest P200,000 and Brillantes, P300,000. Calamba will devote full time to the business, and 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 investments 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 P340,000 to Calamba and P170,000 to Brillantes, and the remainder equally. f. Plan (e), except that Calamba is also to be allowed a bonus equal to the 20% of the amount by which profit exceeds the salary allowances. Determine the partners’ share in profit or loss for each of the situations above assuming: (1) Profit of P1,500,000 (2) Profit of P660,000
Stephanie Calamba and Allan Brillantes decided to form a
Brillantes, P300,000. Calamba will devote full time to the business, and 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 investments
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 P340,000 to Calamba and P170,000 to Brillantes, and
the remainder equally.
f. Plan (e), except that Calamba is also to be allowed a bonus equal to the 20% of the amount by which profit exceeds
the salary allowances.
Determine the partners’ share in profit or loss for each of the situations above assuming:
(1) Profit of P1,500,000
(2) Profit of P660,000
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