SOLUTION AND EXPLANATION

Dianne, Alex, and Pia formed a partnership on January 1, 2009 with capital contributions of P 300,000, P 500,000, and P 200,000, respectively. For the year ended December 31, 2009, the partnership reported at P 450,000 Required: Determine the pa rtner's share in the prot under each independent assumption. 1. Prot is allocated on the basis of capital contributions. 2. Each partneris allotted an interest of T36 on initial capital contributions and the remainder is divided among the partners using the ratio of 4:3:1 respectively. 3. Salaries of P 50,000, P40,000, and P 30,000 are given to the partners respectively; 5% interest on initial capital contributions, and the remainder is divided 4:3:1. 4. Salaries of P 30,000, P45,000, and P 65,000 are given to the partners respectively; 5% interest on initial capital contributions; bonus to Dianne of 8% of prot after deducting bonus but before deducting salaries and interests, and the remainder will be divided equally