Rico and Puno formed a partnership with an agreed capital of P 240,000 divided equally between them. Their profit and loss sharing agreement provides that Rico will share 60% and Puno will share 40%

If the partners decide to make their capital ratio proportionate to their profit and loss sharing ratio without changing the agreed capital, what should be done?

Group of choices

a.Puno should make an additional investment of P 24,000

b.The new capital ratio should be changed to 40% for Rico and 60% for Puno

c.The partners should divide the profits and losses equally

d.Rico should make an additional investment of P 24,000

If the partners decide to make their capital ratio proportionate to their profit and loss sharing ratio by changing the agreed capital (use the profit sharing ratio of Rico), what should be done?

Group of choices

a.Rico should transfer P 40,000 of his capital to Puno

b.Puno should transfer P 40,000 of his capital to Rico

c.Puno should make a withdrawal of P 40,000

d.Rico should make an additional investment of P 24,000