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Chapter 2 10

Stephanie Calamba and Allan Brillantes formed a partnership, with Calamba investing P200000 and Brillantes P300000. Calamba will devote full time to the business while Brillantes works part-time. They considered several plans to divide profits: (1) equal division, (2) ratio of investments, (3) ratio of time, (4) 10% interest on investments and remainder 3:2 ratio, (5) 10% interest, salaries, remainder equal, (6) same as 5 but Calamba gets 20% bonus if profit exceeds salaries. The document calculates each partner's share under each plan assuming profits of P1500000 and P660000.

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7K views2 pages

Chapter 2 10

Stephanie Calamba and Allan Brillantes formed a partnership, with Calamba investing P200000 and Brillantes P300000. Calamba will devote full time to the business while Brillantes works part-time. They considered several plans to divide profits: (1) equal division, (2) ratio of investments, (3) ratio of time, (4) 10% interest on investments and remainder 3:2 ratio, (5) 10% interest, salaries, remainder equal, (6) same as 5 but Calamba gets 20% bonus if profit exceeds salaries. The document calculates each partner's share under each plan assuming profits of P1500000 and P660000.

Uploaded by

grace
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© © All Rights Reserved
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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 P200000
and Brillantes, P300000. Calamba will devote full time to the business, an 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 investment.
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 P340000 to Calamba and P170000 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 (a)profit of P1500000
and(2) profit of P660000.

  Profit: P1500000
Calamba Brillantes Total
300000.0
contribution 200000.00 0 500000.00
750000.0 1500000.0
a. profit 1:1 750000.00 0 0
900000.0 1500000.0
b. profit 4:6 600000.00 0 0
1000000.0 500000.0 1500000.0
c. profit 2:1 0 0 0
d. interest 10% 20000.00 30000.00 50000.00
580000.0 1450000.0
remainder 3:2 870000.00 0 0
610000.0 1500000.0
total profit 890000.00 0 0
e. interest 10% 20000.00 30000.00 50000.00
170000.0
salary 340000.00 0 510000.00
470000.0
remainder 1:1 470000.00 0 940000.00
670000.0 1500000.0
total profit 830000.00 0 0
f. interest 10% 20000.00 30000.00 50000.00
170000.0
salary 340000.00 0 510000.00
bonus 20% 198000.00   198000.00
371000.0
remainder 1:1 371000.00 0 742000.00
total profit 929000.00 571000.0 1500000.0
0 0

  Profit: P660000
Calamba Brillantes Total
300000.0
contribution 200000.00 0 500000.00
330000.0
a. profit 1:1 330000.00 0 660000.00
396000.0
b. profit 4:6 264000.00 0 660000.00
220000.0
c. profit 2:1 440000.00 0 660000.00
d. interest 10% 20000.00 30000.00 50000.00
244000.0
remainder 3:2 366000.00 0 610000.00
274000.0
total profit 386000.00 0 660000.00
e. interest 10% 20000.00 30000.00 50000.00
170000.0
salary 340000.00 0 510000.00
remainder 1:1 50000.00 50000.00 100000.00
250000.0
total profit 410000.00 0 660000.00
f. interest 10% 20000.00 30000.00 50000.00
170000.0
salary 340000.00 0 510000.00
bonus 20% 198000.00   198000.00
-
remainder 1:1 -49000.00 49000.00 -98000.00
151000.0
total profit 509000.00 0 660000.00

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