2. Determine the share of profit for each partner in 2016 and 2017 under each of the following conditions: a. The partners agreed to share profit equally. b. The partners failed to agree on a profit-sharing arrangement. C. The partners agreed to share profit according to the ratio of their original investments. d. The partners agreed to share profits by allowing interest of 10% on their original investments and dividing the remainder equally. e. The partners agreed to share profits by allowing salaries of P400,000 for Marasigan and P280,000 for Asacta, and dividing the remainder equally. f. The partners agreed to share profits by paying salaries of P400,000 to Marasigan and P280,000 to Asacta, allowing interest of 9% on their original investments, and dividing the remainder equally.
2. Determine the share of profit for each partner in 2016 and 2017 under each of the following conditions: a. The partners agreed to share profit equally. b. The partners failed to agree on a profit-sharing arrangement. C. The partners agreed to share profit according to the ratio of their original investments. d. The partners agreed to share profits by allowing interest of 10% on their original investments and dividing the remainder equally. e. The partners agreed to share profits by allowing salaries of P400,000 for Marasigan and P280,000 for Asacta, and dividing the remainder equally. f. The partners agreed to share profits by paying salaries of P400,000 to Marasigan and P280,000 to Asacta, allowing interest of 9% on their original investments, and dividing the remainder equally.
Chapter13: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 33P
Related questions
Question
answer number 2 letter d, e and f thank you
![Problem #9
Rules for the Distribution of Profits or Losses
回 山
In January 2016, Nick Marasigan and Dems Asacta agreed to produce and sell chocolate
candies. Marasigan contributed P2,400,000 in cash to the business. Asacta contributed
the building and equipment, valued at P2,200,000 and P1,400,000, respectively. The
partnership had profits of P840,000 during 2016 but was less successful during 2017,
when profit was only P400,000.
Required:
1. Prepare the journal entry to record the investment of both partners in the
partnership.
2. Determine the share of profit for each partner in 2016 and 2017 under each of the
following conditions:
a. The partners agreed to share profit equally.
b. The partners failed to agree on a profit-sharing arrangement.
c. The partners agreed to share profit according to the ratio of their original
investments.
d. The partners agreed to share profits by allowing interest of 10% on their
original investments and dividing the remainder equally.
e. The partners agreed to share profits by allowing salaries of P400,000 for
Marasigan and P280,000 for Asacta, and dividing the remainder equally.
f.
The partners agreed to share profits by paying salaries of P400,000 to
Marasigan and P280,000 to Asacta, allowing interest of 9% on their original
investments, and dividing the remainder equally.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fce30a414-eccd-4d0a-a54c-11ee246c5c2a%2F21ce09fe-114d-499d-a7ba-e27c2b29c2cc%2F9hzrdos_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem #9
Rules for the Distribution of Profits or Losses
回 山
In January 2016, Nick Marasigan and Dems Asacta agreed to produce and sell chocolate
candies. Marasigan contributed P2,400,000 in cash to the business. Asacta contributed
the building and equipment, valued at P2,200,000 and P1,400,000, respectively. The
partnership had profits of P840,000 during 2016 but was less successful during 2017,
when profit was only P400,000.
Required:
1. Prepare the journal entry to record the investment of both partners in the
partnership.
2. Determine the share of profit for each partner in 2016 and 2017 under each of the
following conditions:
a. The partners agreed to share profit equally.
b. The partners failed to agree on a profit-sharing arrangement.
c. The partners agreed to share profit according to the ratio of their original
investments.
d. The partners agreed to share profits by allowing interest of 10% on their
original investments and dividing the remainder equally.
e. The partners agreed to share profits by allowing salaries of P400,000 for
Marasigan and P280,000 for Asacta, and dividing the remainder equally.
f.
The partners agreed to share profits by paying salaries of P400,000 to
Marasigan and P280,000 to Asacta, allowing interest of 9% on their original
investments, and dividing the remainder equally.
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