Lester and Stephen formed a partnership with capital contributions of P300,000 and P700,000, respectively. During its...
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Lester and Stephen formed a partnership with capital contributions of P300,000 and P700,000, respectively. During its first year of operations, the partnership earned a profit of P200,000. Prepare a schedule showing the division of profit between the partners under each of the following independent assumptions: 1. Profit is divided equally. 2. There is no profit or loss sharing agreement. 3. A monthly salary of P8,000 will be given to Lester and the balance divided in the ratio of their capital balances. 4. A monthly salary of P8,000 will be given to Lester, 6% interest will be allowed on the capital balances of each partner, and the balance divided equally. Problem #2 (adapted) Lester and Stephen formed a partnership with capital contributions of P300,000 and P700,000, respectively. During its first year of operations, the partnership suffered a loss of P50,000. Prepare a schedule showing the division of profit between the partners under each of the following independent assumptions: 1. Loss is agreed to be divided equally. 2. There is no profit or loss sharing agreement. 3. A monthly salary of P8,000 will be given to Lester and the balance divided in the ratio of their capital balances. 4. A monthly salary of P8,000 will be given to Lester, 6% interest will be allowed on the capital balances of each partner, and the balance divided equally. Lester and Stephen formed a partnership with capital contributions of P300,000 and P700,000, respectively. During its first year of operations, the partnership earned a profit of P200,000. Prepare a schedule showing the division of profit between the partners under each of the following independent assumptions: 1. Profit is divided equally. 2. There is no profit or loss sharing agreement. 3. A monthly salary of P8,000 will be given to Lester and the balance divided in the ratio of their capital balances. 4. A monthly salary of P8,000 will be given to Lester, 6% interest will be allowed on the capital balances of each partner, and the balance divided equally. Problem #2 (adapted) Lester and Stephen formed a partnership with capital contributions of P300,000 and P700,000, respectively. During its first year of operations, the partnership suffered a loss of P50,000. Prepare a schedule showing the division of profit between the partners under each of the following independent assumptions: 1. Loss is agreed to be divided equally. 2. There is no profit or loss sharing agreement. 3. A monthly salary of P8,000 will be given to Lester and the balance divided in the ratio of their capital balances. 4. A monthly salary of P8,000 will be given to Lester, 6% interest will be allowed on the capital balances of each partner, and the balance divided equally.
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Here are the stepbystep workings for each assumption Problem 1 Profit of P200000 1 Profit divided eq... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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