Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ables had P275, 000 invested during all of 2018; Galang had P200, 000 invested from January 1 to August 31, and he invested another P75,

Ables had P275, 000 invested during all of 2018; Galang had P200, 000 invested from January 1 to August 31, and he invested another P75, 000 on September 1. If the profit was P800, 000 during 2018, how much should each partner receive under each of the following conditions:

a.Ables and Galang agreed to share profit and losses in a ratio of 60:40.

b.The partners agreed to share profit according to the ratio of their original investments.

c.The partners agreed to share profit on the basis of their average capital balances.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: LibbyShort

7th Edition

78111021, 978-0078111020

More Books

Students also viewed these Accounting questions

Question

=+ b. A change in weather patterns increases the depreciation rate.

Answered: 1 week ago