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?
Chapter20: Corporations And Partnerships
Section: Chapter Questions
Problem 55P
Related questions
Question
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?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College