Answer Happy

Problem #10 Rules for the Distribution of Profits or Losses 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 20% of the amount by which profit exceeds the salary allowances. Required: Determine the partners' share in the profit or loss for each of the situations above assuming: (1) profit of P1,500,000 and (2) profit of P660,000.