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Division of Profits

The document presents a series of partnership profit and loss distribution problems involving partners Lance, Rex, and Ted, with varying agreements on bonuses, salary allowances, and capital contributions. Each problem requires calculating the share of profits or losses for the partners based on specific conditions set for the year 2023. The document is intended for discussion in an upcoming meeting.

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dhonjaymieldeleon23
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6 views

Division of Profits

The document presents a series of partnership profit and loss distribution problems involving partners Lance, Rex, and Ted, with varying agreements on bonuses, salary allowances, and capital contributions. Each problem requires calculating the share of profits or losses for the partners based on specific conditions set for the year 2023. The document is intended for discussion in an upcoming meeting.

Uploaded by

dhonjaymieldeleon23
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Division of profits/loss among partners

Problem 1.
The partnership of Rex and Ted realized a net income of P460,000 in 2023. The partners agreed that Rex will
be entitled to a 20% bonus for managing the business and the balance to be distributed equally. What is the
amount of bonus
 if bonus is based on net income before bonus
 If bonus is based on net income after bonus

Problem 2.
Lance, Rex, and Ted are business partners with capital of P300,000; P200,000; and P100,000 respectively.
For the year 2023, their business made profit of P500,000. How much is the share of Ted in the profit?

Problem 3.
Lance, Rex, and Ted are business partners with capital of P300,000; P200,000; and P100,000 respectively.
They agreed to divide profits loss as follows:
 Salary allowances of P25,000 to each partner.
 10% interest on partners’ capital
 Lance, being the managing partner, will be allowed a bonus of 25% of the profit.
 The balance to be divided equally.
For the year 2023, the partnership suffered a loss of P400,000. How much is the share of Lance in the
profit?

Problem 4.
Lance, Rex, and Ted are business partners with capital of P300,000; P200,000; and P100,000 respectively.
They agreed to divide profits loss as follows:
 Salary allowances of P25,000 to each partner.
 10% interest on partners’ capital
 Lance being the managing partner will be allowed a 25% bonus after deducting the salary
allowances, interest on capital and the bonus
 The balance to be divided in the ratio of 3:2:1

For the year 2023, their business made profit of P500,000. How much is the share of Lance in the profit?
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Problem 5.
Lance, Rex, and Ted are business partners with capital of P300,000; P200,000; and P100,000 respectively.
They agreed to divide profits loss as follows:
 Salary allowances of P25,000 to each partner.
 10% interest on partners’ capital
 The balance is to be divided equally

The profit after salary allowances and interest on capital amounts to P150,000. How much is the total share
of Rex in the profit?

Problem 6.
Lance, Rex, and Ted are business partners. They share profits in the ratio of 4:3:2. Lance and Rex are
capitalist partners while Ted is industrial partner. For year 2023, the result of business operations is net loss
of P230,000. How much is the share of Lance in the loss?

Please answer the above problems. For discussion on our next meeting.

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