CALAMBA AND BRILLANTES PROBLEM-OBLIGA SHAIRA MAE.docx -...

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT
Shaira Mae Obliga
BSA – 4 th Year
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.

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT
Salary 340,000 170,000 510,000
Remainder 1:1 470,000 470,000 940,000
Total Profit 830,000 670,000 1,500,000
f. Interest 10% 20,000 30,000 50,000
Salary 340,000 170,000 510,000
Bonus 20%