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    Chapter 2 Problem 9 in Win Ballada Parcor

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    Katrina Petrache
    The document outlines the rules for dividing profits and losses between two investors, Marasigan and Asacta, in their business over the years 2019 and 2020. It shows the calculations for dividing revenues, interest on investments, salaries, and losses according to the partners' initial capital contributions of $2.4 million for Marasigan and $3.6 million for Asacta. In 2019, Marasigan's total share of the $840,000 profit was $426,000 and Asacta's was $414,000. In 2020, with total profits of $400,000, Marasigan's share was $206,000 and Asacta's was $194,000.

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    Chapter 2 Problem 9 in Win Ballada Parcor

    Uploaded by

    Katrina Petrache
    383 views4 pages
    The document outlines the rules for dividing profits and losses between two investors, Marasigan and Asacta, in their business over the years 2019 and 2020. It shows the calculations for dividing revenues, interest on investments, salaries, and losses according to the partners' initial capital contributions of $2.4 million for Marasigan and $3.6 million for Asacta. In 2019, Marasigan's total share of the $840,000 profit was $426,000 and Asacta's was $414,000. In 2020, with total profits of $400,000, Marasigan's share was $206,000 and Asacta's was $194,000.

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    The document outlines the rules for dividing profits and losses between two investors, Marasigan and Asacta, in their business over the years 2019 and 2020. It shows the calculations for dividing revenues, interest on investments, salaries, and losses according to the partners' initial capital contributions of $2.4 million for Marasigan and $3.6 million for Asacta. In 2019, Marasigan's total share of the $840,000 profit was $426,000 and Asacta's was $414,000. In 2020, with total profits of $400,000, Marasigan's share was $206,000 and Asacta's was $194,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    383 views4 pages

    Chapter 2 Problem 9 in Win Ballada Parcor

    Uploaded by

    Katrina Petrache
    The document outlines the rules for dividing profits and losses between two investors, Marasigan and Asacta, in their business over the years 2019 and 2020. It shows the calculations for dividing revenues, interest on investments, salaries, and losses according to the partners' initial capital contributions of $2.4 million for Marasigan and $3.6 million for Asacta. In 2019, Marasigan's total share of the $840,000 profit was $426,000 and Asacta's was $414,000. In 2020, with total profits of $400,000, Marasigan's share was $206,000 and Asacta's was $194,000.

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    PROBLEM 9 - RULES FOR DIVISION OF PROFITS AND L

    1.) Cash 2,400,000


    Building 2,200,000
    Equipment 1,400,000
    Marasigan, Capital 2,400,000
    Asacta, Capital 3,600,000
    To record the investments of Marasigan and Asacta

    2.) Computations for 2019


    Marasigan Asacta Total
    a.) 840,000 x 50% 420,000
    840,000 x 50% 420,000 840,000

    b.) 840,000 x 2,400,000 / 6,000,000 336,000


    840,000 x 3,600,000 / 6,000,000 504,000 840,000

    c.) 840,000 x 2,400,000 / 6,000,000 336,000


    840,000 x 3,600,000 / 6,000,000 504,000 840,000

    d.) 10% interest on


    original investment

    10% x 2,400,000 240,000


    10% x 3,600,000 360,000 600,000

    Balance to be
    divided equally
    (840,000 - 600,000)

    240,000 x 50% 120,000


    240,000 x 50% 120,000 240,000

    Total share in profit 360,000 480,000 840,000

    e.) Salary allowances


    400,000 280,000 680,000

    Balance to be
    divided equally
    (840,000-680,00)

    160,000 x 50% 80,000


    160,000 x 50% 80,000 160,000

    Total share of profit 480,000 360,000 840,000


    f.) Salary allowances
    400,000 280,000 680,000

    9% interest on
    original investment

    2,400,000 x 9% 216,000
    3,600,000 x 9% 324,000 540,000

    Balance to be
    divided equally
    (840,000 - 1,220,000)

    380,000 x 50% (190,000)


    380,000 x 50% (190,000) (380,000)

    Total share in profit 426,000 414,000 840,000


    R DIVISION OF PROFITS AND LOSSES

    Computations for 2020


    Marasigan Asacta Total
    a.) 400,000 x 50% 200,000
    400,000 x 50% 200,000 400,000

    b.) 400,000 x 2,400,000 / 6,000,000 160,000


    400,000 x 3,600,000 / 6,000,000 240,000 400,000

    c.) 400,000 x 2,400,000 / 6,000,000 160,000


    400,000 x 3,600,000 / 6,000,000 240,000 400,000

    d.) 10% interest on


    original investment

    10% x 2,400,000 240,000


    10% x 3,600,000 360,000 600,000

    Balance to be
    divided equally
    (400,000 - 600,000)

    (200,000) x 50% (100,000)


    (200,000) x 50% (100,00) (200,000)

    Total share in profit 140,000 260,000 400,000

    e.) Salary allowances


    400,000 280,000 680,000

    Balance to be
    divided equally
    (400,000-680,00)

    (280,000) x 50% (140,000)


    (280,000) x 50% (140,000) (280,000)

    Total share of profit 260,000 140,000 400,000


    f.) Salary allowances 400,000 280,000 680,000

    9% interest on
    original investment

    2,400,000 x 9% 216,000
    3,600,000 x 9% 324,000 540,000

    Balance to be
    divided equally
    (400,,000 - 1,220,000)

    (820,000) x 50% (410,000)


    (820,000) x 50% (410,000) (820,000)

    Total share in profit 206,000 194,000 400,000

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