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20. X, Y and Z form a partnership and agree to maintain average investments of P2,500,000, P1,250,000 and P1,250,000, respectively. Interest on the excess or
20. X, Y and Z form a partnership and agree to maintain average investments of P2,500,000, P1,250,000 and P1,250,000, respectively. Interest on the excess or deficiency in a capital contribution is to be computed at 6% per annum. After the interest allowances, X, Y and Z are to share any balance in the ratio of 5:3:2. Average amounts invested during the first six months were as follows: X, P3,000,000, Y, P1,375,000 and Z, P1,000,000. A loss from operations of P62,500 was incurred for the first six months. How is this loss distributed among the partners? FF GG HH a. P21,875 P18,375 P22,250 b 12,500 10,000 49.500 C. 31,250 18,750 12,500 18,375 21,875 22,250
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