Styles Division of Net Income /Net Loss Partnership Operation DAVID, RODRIGO and BORJA formed a commercial partnership in May 30, 2020. DAVID invested P150,000; RODRIGO P180,000 and BORJA P270,000. DAVID will be the managing partner. RODRIGO will work in the store half of his time while BORJA will be a silent partner. COMPUTE THE SHARE OF EACH PARTNER UNDER THE FOLLOWING INDEPENDENT CASES.PUT NEGATIVE SIGN (-) IF IT CONSTITUTE LOSS. Case1: Loss is P429,000 and the partners have no written partnership agreement. DAVID: RODRIGO: BORJA: Case 2: Loss is P600,000. The articles of partnership states that partners DAVID, RODRIGO and BORJA agreed that profits would be shared in the ratio of 40:25:35, respectively. The agreement did not mention the manner of sharing of losses. DAVID: RODRIGO: BORJA: Case 3: Profit is P920, 000. The first P400,000 is shared on the basis of salary allowances, with DAVID receiving P280,000 and RODRIGO receiving P120,000. The remainder is allocated on the basis of their capital contributions. DAVID: RODRIGO: BORJA: Case 4: Profit is P1, 800,000. RODRIGO will receive a bonus of 10% before salaries and interest; a salary of P200,000 and P100,000 for RODRIGO and DAVID, respectively. Interest on capital contribution will be provided at 15% for each partner. Any remainder is shared equally. DAVID RODRIGO: BORJA: INSTALLMENT LIQUIDATION Jao, Mikay and Gino are partners in a law firm. They share profits and losses in 5:3.2 ratio. The partnership agreement provided for annual salaries of P400,000,P350,000 and P300,000, respectively, interest of 12% on their Jan. 1 capital balances and any balance to be divided in the P/L ratio. The partners' capital balances as of Jan. 1, 2011 were Jao, P1,200,000: Mikay P750,000 and Gino, P500,000. No additional investment were made during the year. Profit for 2011 was P1,600,000. Partners' withdrawal for the year were as follows: Jao P500,000;Mikay,P400,000 and Gino P350,000. On Mar.4. 2012, the partners decided to liquidate their law firm. On that date, the firm has a cash balance of P460,000, non-cash assets of P2,740,000 and liabilities of p400,000. No additional investments or withdrawals have been made in 2012. Between Mar 5 and Mar 31, the non-cash assets are sold for P2,900,00, the gain is divided in the profit and loss ratio. The liabilities are paid and the remaining cash is then distributed to the partners. Required: 1. Assume non-cash assets were sold as follows: March-50%, April 30% and May-20% for P1,500,000, P700,000 and P200,000, respectively. Compute the for the following: a. Cash received by each partner in March. Jao Mikay Gino b. Cash received by each partner in April. Jao Mikay Gino c. Cash received by each partner in May. Jao Mikay Gino 2. Prepare the Statement of Liquidation. (Use either Cash Priority Program or Schedule of Safe Payments)
