PARTNERSHIP

* It is a contract where 2 or more persons bind themselves to contribute money, property or industry
to a common fund, with intentions of dividing profits among themselves.
* There is an agreement ( Oral and Written)
*Essential Characteristics of Contract: Consent, Object and Cause
Consent-Pagpayag, Object-ibibigay mo, Cause-Matatanggap mo

CHARACTERISTICS
1. Mutual Contribution - All members should have contribute either money, prorepety or industry
2. Division of Profit or Losses - Purpose of business, dividing profits or losses
3. Coownership of contributed assets - all things have been contibuted in partnership, the partners are all owners
4. Mutual Agency -All partners is agent in the partnership, the act of one partner, the act of all of partners
within the scope of his authority. Fiduciary- Confident and Trust
5. Limited Life - Limited, easy to dissolve
6. Unlimited Liability - Unlimited Obligation, personal property can be used to pay the liability
7.Income Taxes - there is tax
8. Partners Equity Account - credited in account,separate account
perty or industry

ty or industry

p, the partners are all owners

act of all of partners
 DISTRIBUTION OF PROFIT OR LOSSES
Profit:
* According to partner's agreement
*If there is no agreement
Capitalist Partner - Based on Capital Contribution (Original)
Industrial Partner - just and equitable under the circumstances
Losses:
*Partner's Agreement
* If there is no agreement for losses, it will be based on division of profit
* If there is no any agreement
Capitalist Partner - Based on Capital Contribution (Original)
Industrial Partner - Not Liable for losses

PROFIT 600,000
1. Profit is divided equally
Padilla 300,000 Dr
Caster 300,000 Cr
600,000
2. Ratio of 3: 4
Padilla 600,000 * 3/7 257,142.86
Caster 600,000 * 4/7 342,857.14
600,000.00

3. No profit sharing agreement

Padilla 2,500,000.00 375000
Caster 1,500,000.00 225000
4,000,000.00 600000

4. Based on Begginning
Padilla 2,500,000.00 375000
Caster 1,500,000.00 225000
4,000,000.00 600000

5. Based on ending
Padilla 3,150,000.00 381818.181818182
Caster 1,800,000.00 218181.818181818
4,950,000.00 600,000.00

6. Based Average Capital Ratio

PADILLA CAPITAL Months Unchaged
Jan-01 2,500,000.00 2,500,000.00 3
Apr-01 2,750,000.00 250,000.00 1
May-01 2,650,000.00 - 100,000.00 5
Oct-01 3,150,000.00 500,000.00 3
No. of Year 12
 CASTER CAPITAL Months Unchaged
Jan-01 1,500,000.00 1,500,000.00 5
Jun-01 1,350,000.00 - 150,000.00 3
Sep-01 1,850,000.00 500,000.00 3
Dec-01 1,800,000.00 - 50,000.00 1
No. of Year 12

Padilla 2,745,833.33 381,292.19

Caster 1,575,000.00 218,707.81
4,320,833.33 600,000.00

7. 10% Interest in ending capital, 60% 40% remaining

Interest Remaining Ratio
Padilla 315,000.00 63,000.00 60%
Caster 180,000.00 42,000.00 40%
Total 495,000.00 105,000.00 100%

8. Robin 350,000, 3:1 Remaining

Salaries Remaining Ratio
Padilla 350,000.00 50,000.00 1
Caster 200,000.00 4
Total 350,000.00 250,000.00 5

9. Batman 20% bonus of profit before bonus and tax, remaining based on beg.
Bonus Ratio Remaining
Padilla 2,500,000.00 300,000.00
Caster 120,000.00 1,500,000.00 180,000.00
Total 120,000.00 4,000,000.00 480,000.00

10. 5,000 and 10,000: 10% in average capital: 2:3 Ratio

Salary interest Ratio
Padilla 260,000.00 274,583.33 2
Caster 520,000.00 157,500.00 3
Total 780,000.00 432,083.33 5

11. Loss of 100,000

Salary interest Ratio
Padilla 260,000.00 274,583.33 2
Caster 520,000.00 157,500.00 3
Total 780,000.00 432,083.33 5
ROFIT OR LOSSES PADILLA AND CASTER PARTNERSHIP
PADILLA CAPITAL
Jan-01 2,500,000.00
Apr-01 250,000.00
May-01 - 100,000.00
Oct-01 500,000.00
3,150,000.00
CASTER CAPITAL
Jan-01 1,500,000.00
Jun-01 - 150,000.00
Sep-01 500,000.00
Dec-01 - 50,000.00
1,800,000.00

Income summary
Capital

Average
625,000.00
229,166.67
1,104,166.67
787,500.00
2,745,833.33
 Average
625,000.00
337,500.00
462,500.00
150,000.00
1,575,000.00

Total
378,000.00
222,000.00
600,000.00

Total
400,000.00
200,000.00
600,000.00

based on beg.
Total
300,000.00
300,000.00
600,000.00

Remaining Total
- 244,833.33 289,750.00
- 367,250.00 310,250.00
- 612,083.33 600,000.00

Remaining Total
- 524,833.33 9,750.00
- 787,250.00 - 109,750.00
- 1,312,083.33 - 100,000.00
z
 PARTNERSHIP DISSOLUTION
* Limited Life as one of its characteristicss, it means this kind of business can be easilly dissovled
* When dissolution happens, there is a change in relation among the partners and it caused by the partner also
* Dissolution is not Liquadation, Dissolution is not about termininating or winding up of affairs.

POSSIBLE REASON WHY DISSOLUTION HAPPENS

1. Admission of Partners - may papasok na bagong partner
2. Withdrawal, Retrirement or death of a partner
3. Incorporation of a partnership

Notes :
* Withdrawal and Admission of new partner dissolves the original partnership agreement ( Changes in number of
* In admission, all partners should have the consent to admit a new partner

Admission of a partner
1. Purchase of interest in the partnership
2. Investment in the Partnership

* Admitting a partner happens when that new part purchase the part or all of the interest or existing partner,
It considered as personal transaction
* Transfer within equity is only recorded in partnership books

REVALUATION OF ASSETS
* When a partnership is dissolved a new partnership is created. Thus, the assets and liabilities should be recorded a

BEFRORE ADMITTING Cs in the Partnership

Carrying Amount Fair Value Inc/Dec
Cash 200,000 20,000
Equipment 340,000 390,000 50,000
AP 10,000 10,000
A, Capital 130,000
B, Capital 220,000

* There is an increase in assets equipment

Case: C purchases 20% of A and B interest for 100,000
Revaluation Dr Equipment
50,000*40% 20,000 A Cr Capital
50,000*60% 30,000 B Cr Capital

CAPITAL ENTRY
150,000 * 20% 30,000 A Dr 30,000
250,000* 20% 50,000 B Dr 50,000
Interest of C 80,000 C Cr 80,000
 EXAMPLE:
easilly dissovled OLD
d it caused by the partner also
g up of affairs.

Case 1 :

NEW

reement ( Changes in number of partners)

Partnership Book
DR
e interest or existing partner, CR

ALUATION OF ASSETS
nd liabilities should be recorded at FAIR VALE

PL RATIO
50,000
20,000 A 120,000 32%
30,000 B 200,000 48%
C 80,000 20%
Total 400,000
EXAMPLE:
Capital P/L OLD Capital P/L
A 40,000 40% A 40,000 40%
B 60,000 30% B 60,000 30%
C 80,000 30% C 80,000 30%
Total 180,000 Total 180,000

*D purchase half of Cs capital interest for 48,000 Case 2: * D purchase 25% of calpital interest of A, B, C for 60

Capital P/L NEW Capital P/L

A 40,000 40% A 30,000 30%
B 60,000 30% B 45,000 22.5%
C 40,000 15% C 60,000 22.5%
D 40,000 15% D 45,000 25%
Total 180,000 Total 180,000

Partnership Book Partnership Book

C, Capital 40,000 DR A, Capital 10,000
D, Capital 40,000 DR B, Capital 15,000
DR C, Capital 20,000
CR D, Capital 45,000
 RELATED TO EXAMPLE 2
Purchased DIVISION OF GAIN OR LOSSES
* 25% 10,000 A B
* 25% 15,000 DR Capital Account 10,000 15,000
* 25% 20,000 Gain from D 6,000 4,500
45,000 Total Payment 16,000 19,500
DR Capital Account 10,000 15,000
calpital interest of A, B, C for 60,000 Personal Gain 6,000 4,500

Gain
A 15,000*40% 6,000
B 15,000*30% 4,500
C 15,000*30% 4,500

* Gain or losses are not recorded in partnership book

 Capital P/L
A 40,000 40%
C TOTAL B 60,000 30%
20,000 45,000 C 80,000 30%
4,500 15,000 Total 180,000
24,500 60,000
20,000 45,000 * D puchase 20% of net assets and profits of the partnership from A and B for 50
4,500 15,000
Purchased Amount 50,000
D Interest - 20% * 180k 36,000
Gain 14,000

DR A, Capital 36,000 * 4/7

DR B, Capital 36,000 * 3/7
CR D, Capital 180,000 * 20%

Capital P/L
A 18,284.80 28.57%
B 45,715 21.43%
C 80,000 30%
D 36,000 20%
Total 180,000
 OLD

of the partnership from A and B for 50,000

20572
15429
36,000

NEW
 INVESTMENT IN THE PARTNERSHIP
* Investing directly in the parnertship, it is betweeen the new partner and the partnership
* The consideration paid by the new partner is recognized in partnership book

Investing a new Partner

1. Partner investment id equal to his/her capital credit
2. Investment is greater that to his capital credit, the excess is recognized as bonus to old partners
This will increase the older partners capital and decrease in the new partnew
3. Investment is less than to his capital credit, The excess will be recognized as bonus to the new partner
This is because he contributed his expertise, and will increase new partner capital and decrease old partner capital

Capital P/L Ratio BONUS TO OLD P

A 40,000 40%
B 60,000 30% A 400,000.00
C 80,000 30% B 200,000.00
Total 180,000 600,000.00
250,000.00
Case: D invests 60,000 cash for 25% interest in the partnership C 850,000.00

240,000 * 25% = 45,000 15,000

BONUS TO NEW
Capital P/L Ratio
A 40,000 17% A 400,000.00
B 60,000 25% B 200,000.00
C 80,000 33% 600,000.00
D 60,000 25% 240,000.00
240,000 100% C 850,000.00
RTNERSHIP

he new partner
crease old partner capital

BONUS TO OLD PARTNERS

BONUS AGREED CAPITAL
3 28,125.00 428,125.00
1 9,375.00 209,375.00
4
25% 37,500.00 212,500.00
850,000.00

BONUS TO NEW PARTNER

BONUS AGREED CAPITAL
3 30000 370,000.00
1 10000 290,000.00
4
33.33% 40,000 280,000.00
840,000.00
 PARTNERSHIP LIQUATION
Liquadation - is the termination of the business operations or winding up of affairs.
It is a process by which
1. assets are converted into cash
2. liabilities are settled
3. any any remaining amount are distributed to the owners

Liquadation may be either voluntary - per agreement of partners of a solvent partnership

Involuntary - Bankcruptcy

Conversion of non-cash assets into cash

*The conversion of assets into cash is referred to as "realization"
*The settlement of claims and creditors and owners is referred to as "liquadation"
*The winding up starts with the conversion of non-cash assets into cash

METHODS OF LIQUATION
1. Lump-sump Liquadation - (1)all the non-cash assets are sold simultaneously or within
the very short period (2) settle the liablities (3) the remaining is paid to the partners
under lump-sump payment
* lump-sum liquation is possible when there is contract buyer of all non-cash assets or
the assets are sold on a "pachage deal" basis

2. Installment Adjustment - (1) it take some time to before all the assests are converted into cash,
(2) the partners' claims are setlled on ansettlement basis as become availablr, but only the after
the partnership liabilities are fully settled
* If the financial statement are prepared during the period during the period the liquadation
process, all the assets are restated to their realizable values and liabilities on their expected amounts

SETTLEMENT OF CLAIMS
The availbale cash of the partnership is used to settle claims using the following order of priority
1. Outside
2. Inside creditors (payables to partners)
3. Owners capital balances

RIGHT OF OFFSET
Legal righ of offset allows a defecit in a partner's capital account to be offset by a loan payable
to that partner

CAPITAL DEFICIENCIES
1. If the deficient partner has a loan balance, the exercise right of offset
2.If the deficient part is solvent, then he should invest cash to eleminate his deficiency
3. If the deficient partner is insolvent, then the other partner should absorb deficiency

1. Conversion of
 Fact Pattern
On January 1, 20x1, the partners ABC Co.decided to liquadate their partnership.
The followinginformation was made availble.

Cash 20,000.00
Account Receivable 60,000.00
Inventory 120,000.00
Equipment 300,000.00
Total 500,000.00
Accounts Payable 30,000.00
Payable to B 20,000.00
A, Capital (20%) 100,000.00
B, Capital (30) 150,000.00
C, Capital (50) 200,000.00
Total 500,000.00

Case 1: Lump-sum liquadation

a. 50,000 was collected on accounts receivable; the balance is uncollectible
b. 70,000 was received for the entire inventory
c. the equipment was sold for 250,000
d. 2,000 liquadation expenses were paid

d into cash,

ected amounts
 P/L Ratio
ASSETS LIABILITIES
Cash N-C Assets Accounts Payable Payable to B
Balances b4 Liquadation 20,000.00 480,000.00 30,000.00 20,000.00
1. Conversion of N-C and
Distribution of G/L 368,000.00 - 480,000.00
Total 388,000.00 - 30,000.00 20,000.00
2. Payments to outside - 30,000.00 - 30,000.00
Total 358,000.00 - 20,000.00
3. Payments to inside - 20,000.00 - 20,000.00
Total 338,000.00 -
4. Payments to parters - 338,000.00
Total -

Cash 368,000.00 Accounts Payable 30,000.00

Loss on Sale 112,000.00 Cash 30,000.00
Receivables 60,000.00
Inventory 120,000.00 Payable to B 20,000.00
Equipment 300,000.00 Cash 20,000.00

A, Capital 22,400.00 A, Capital 77,600.00

B, Capital 33,600.00 B, Capital 116,400.00
C, Capital 56,000.00 C, Capital 114,000.00
Loss on Sale 112,000.00 Cash 338,000.00

STEP 1
Collection on AR 50,000.00
Sales Inventory 70,000.00
Sales of equipment 250,000.00
Liquidation Expenses - 2,000.00
Net Cash Proceeds 368,000.00
Less: Carrying Amount NCA 480,000.00
Total Loss on Sale - 112,000.00

STEP 2
A B C Total
Ratio 0.20 0.30 0.50 1.00
Capital Balances 100,000.00 150,000.00 200,000.00 450,000.00
Payable to B 20,000.00
Total 100,000.00 170,000.00 200,000.00
Allocation of Loss - 22,400.00 - 33,600.00 - 56,000.00 - 112,000.00
Total 77,600.00 136,400.00 144,000.00 358,000.00

Checking
Beginning balance 20,000.00
Net Proceeds (sale of NCA) 368,000.00
Payment to Creditors - 30,000.00
Cash Available 358,000.00
 20% 30% 50%
EQUITY
A, Capital B, Capital C, Capital
100,000.00 150,000.00 200,000.00

- 22,400.00 - 33,600.00 - 56,000.00

77,600.00 116,400.00 144,000.00

77,600.00 116,400.00 144,000.00

77,600.00 116,400.00 144,000.00

- 77,600.00 - 116,400.00 - 144,000.00
- - -

* Statement of Liquadation is financial report that

highlights the realization
 The balance sheet for Christin
INSTALLMENT - SCHEDULE OF SAFE PAYMENTS Pitular, partners sharing profi
*Realization of non-cash assets is accomplished over an extemded showed to the following bala
period of time.
*The liquadation will continue until the non-cash assets have been
realized and all available cash distributed to partnership creditors Sta
and partners.

Installmemt payments to partners are appropriate if necessary safe ASSETS

guard are used to ensure that all partnership creditiors are paid in full Cash
and that no partner is paid more that the amount to which he would be Non-Cash Assets
entitled after all losses on realization of assets are known. Total Assets

LIABILITIES AND OE
1. Realization of non-cash assets and distribution of gain or loss on Liabilities
realization among partners based on their P/L Ratio Violeta Pitular, Loan
2. Payments of liquation expenses and adjustments for unrecorded Christine Gamba, Capital
liabilities; both of these items will be distributed among the partners Nancy Mulles, Capital
in their profit Ratio. Violeta Pitular, Capital
3.Payment of liabilities to outsiders Total Liabilities and OE
4. Distribution of cash based on SCHEDULE OF SAFE PAYMENTS which
assumes possible losses due to inability of the partnership to dispose In May, part of the assets are
of part or all the remaining non-cash assets and failure of the partners the remaining assets are sold
with capital deficiencies to make additional contributions. cash is distributed to the prop
Payments to partners can also be made on CASH PRIORITY PROGRAM the of June. Assume further t
partner who is deficient mad
on July 31.
 SCHEDLU 1
The balance sheet for Christine Gamba, Nancy Mulles, and Violeta Gamba,Mulles, a
Pitular, partners sharing profits in the ration of 4:3:3 respectively Schedule of Safe
showed to the following balances on April 30,2014, just before liquation May 31, 20

Gamba,Mulles, and Pitular Ratio

Statement of Financial Position Capital Balances
April 30, 2014 Loan Balance
Partners' Total Interest
Possible Loss of 950,000 on NCA
315,000.00 Balances
Non-Cash Assets 1,250,000.00 Additional Possible Losses, If Pitular
Total Assets 1,565,000.00 unable to satisfy her defiency

LIABILITIES AND OE SCHEDULE 2

Liabilities 435,000.00 Gamba,Mulles, a
Violeta Pitular, Loan 30,000.00 Schedule of Safe
Christine Gamba, Capital 600,000.00 June 30, 2
Nancy Mulles, Capital 350,000.00
Violeta Pitular, Capital 150,000.00 Ratio
Total Liabilities and OE 1,565,000.00 Capital Balances
Loan Balance
In May, part of the assets are sold at book value 300,000. In June, Partners' Total Interest
the remaining assets are sold for 210,000. Asssume that available Possible Loss of 740,000 on NCA
cash is distributed to the proper parties at the end of May and at Less Right of offset
the of June. Assume further that aortner are solvent and that any Capital Balances
partner who is deficient made appropriate payment to the partnership Additional Possible loss If Pitular
on July 31. unable to satisfy Possible Deficiency
Gamba,Mulles, and Pitular G
Schedule of Safe Payment S
May 31, 2014
Gamba Mulles Pitular Ratio
4 3 3 Cash
600,000.00 350,000.00 150,000.00 Capital Balance 315,000.00
30,000.00 May, Sale of Non-Cash 300,000.00
600,000.00 350,000.00 180,000.00 Balances 615,000.00
- 380,000.00 - 285,000.00 - 285,000.00 May, Payment of Liabilities - 435,000.00
220,000.00 65,000.00 - 105,000.00 180,000.00
May, Installment (Sch. A) - 180,000.00
- 60,000.00 - 45,000.00 105,000.00 Ca -
160,000.00 20,000.00 - June, Sale of Non-Cash 210,000.00
Balances 210,000.00
Gamba,Mulles, and Pitular Right of Offset
Schedule of Safe Payment Balances 210,000.00
June 30, 2014 June, Installment (Sched. B) - 210,000.00
Gamba Mulles Pitular -
4 3 3 July, Additional Investment 42,000.00
600,000.00 350,000.00 150,000.00 Balances 42,000.00
30,000.00 July, Final Imstallment - 42,000.00
600,000.00 350,000.00 180,000.00 -
- 296,000.00 - 222,000.00 - 222,000.00
- 160,000.00 - 20,000.00
144,000.00 108,000.00 - 42,000.00

- 24,000.00 - 18,000.00 42,000.00

120,000.00 90,000.00 -
 Gamba,Mulles, and Pitular
Schedule of Safe Payment
May 31, 2014
4 3 3
NCA Liabilities Pitular, Loan Gamba, Capital Mulles, Capital Pitular, Capital
1,250,000.00 435,000.00 30,000.00 600,000.00 350,000.00 150,000.00
- 300,000.00
950,000.00 435,000.00 30,000.00 600,000.00 350,000.00 150,000.00
- 435,000.00
950,000.00 - 30,000.00 600,000.00 350,000.00 150,000.00
- 160,000.00 - 20,000.00
950,000.00 - 30,000.00 440,000.00 330,000.00 150,000.00
- 950,000.00 - 296,000.00 - 222,000.00 - 222,000.00
- - 30,000.00 144,000.00 108,000.00 - 72,000.00
- 30,000.00 30,000.00
- 144,000.00 108,000.00 - 42,000.00
- 120,000.00 - 90,000.00
24,000.00 18,000.00 - 42,000.00
42,000.00
24,000.00 18,000.00 -
- 24,000.00 - 18,000.00
- -
*Mike and Mario agreed to form a partnership .
Mike contributed equipment with carrying amount
of 100,000 and fair value of 70,000 while Mario contributed
cash of 200,000. The partners agreed to have a profit sharing
of 2:1 respectively. The initial credits to the partner's capital
shall be reflect this fact. Under the bonnus method, how
much is the balance of capital balance of of Mario immediately

MIKE MARIO RATIO

Equipment 70,000.00 2.00 70,000.00
Cash 200,000.00 1.00 200,000.00
Total 3.00 270,000.00

MIKE 270,000 *2/3

180,000.00
MARIO 270,000 * 1/3
90,000.00
* A and B Agreed to form a partnership . The partnership Mr. Sun and Mr. Moon form
agreement stipulates the following: contributions as follows:
1. Initial Capital of 300,000
2. A 25: 75 interest in the equity of the partnership Cash
A/R
A contributed 100,000 cash , while B contributed 200,000 Land
cash. Which partner should provide additiional investment Equip.
(withdraw part of his investment) in order to bring the aprtner' Total
capital credits equal to their respective interest in the equity
of the partnership? * Only80% of the accounts r
* The land is stated at origin
A B RATIO 1,000,000. The partnership a
Equipment 100,000.00 25% 100,000.00 mortgage on the land.
Cash 200,000.00 75% 200,000.00 * Ms. Moon acquired the eq
Total 100% 300,000.00 financing basis. Ms. Moon p
principal balnce of 80,000 us
A 300,000 * 25% * partner A will withdraw 25,000 The equipment is under dep
75,000.00
B 300,000 * 75% Revaluation of Assets
225,000.00 * partner B will invest add. 25,000
Cash
A/R
Land
Equip.
Total

AR

Equip.

* The partners agreed to sha

equally. A partner should m
in order for the capital balan
equal interest in the partner

*Ms. Sun will invest addition

Mr. Sun and Mr. Moon formed a partnership. Their Compute for the respective share of the partners in the profi
contributions as follows: 3. A and B's Partnerhsip agreement states the following
Mr. Sun Ms. Moon *Annual Salaries of 96,000 for A and 60,000 for B
400,000.00 *10% bonus to A based on the profit after salaries and bonu
250,000.00 *P/L ratio of 60:40
750,000.00
180,000.00 The partnership earned a profit of 200,000 before salaries an
650,000.00 1,130,000.00 Req: Compute for the respective shares of the partners in th

* Only80% of the accounts receivable is deemed collect. A

* The land is stated at original cost. The fair value is Ratio 60%
1,000,000. The partnership assumes a 250,000 unpaid Salaries 96,000.00
mortgage on the land. Bonus 4,400.00
* Ms. Moon acquired the equipment on a long term Remaining 23,760.00
financing basis. Ms. Moon promised to pay the unpaid Total 124,160.00
principal balnce of 80,000 using her personal funds.
The equipment is under depreciated by 30,000.

Revaluation of Assets
Mr. Sun Ms. Moon
400,000.00
200,000.00
750,000.00
150,000.00
600,000.00 900,000.00

250,000
80%
200000
180,000
less: 30,000
150,000
* The partners agreed to share in profits and losses
equally. A partner should make an additional contrib
in order for the capital balance to reflect the partners'
equal interest in the partnership.

900,000
Less: 600,000
300,000
*Ms. Sun will invest additional 300,000
ctive share of the partners in the profit 4. A and B's partnership agreement provides fro an annual salary
p agreement states the following allowance of 100,000 for A and 10% interest on the weighted average
000 for A and 60,000 for B capital balance of B. The remainder is shared on 60:40 ratio, respective
d on the profit after salaries and bonus During the period, the partnership earned profut of 200,000. B's capital
account had a beginning balance of 120,000. B made additional investm
of 40,000 on April 1, 80,000 on Sept. 30 and 20,000 on Dec. 31, and ma
d a profit of 200,000 before salaries and bonus drawings of 60,000 on July 31.
respective shares of the partners in the profit
Req. Compute for respective shares of the partners in the profit
B Total
40% 100% Weighted Average
60,000.00 156,000.00
44,000.00 Date Balance Ratio
15,840.00 39,600.00 Jan-01 120,000.00 1/4
75,840.00 200,000.00 Apr-01 160,000.00 1/3
Jul-31 100,000.00 1/6
Sep-30 180,000.00 1/4
Dec-31 200,000.00
Total

A B
Ratio 60% 40%
Salaries 100,000.00
Interest 14,500.00
Remaining 51,300.00 34,200.00
Total 151,300.00 48,700.00
 ides fro an annual salary
erest on the weighted average
ared on 60:40 ratio, respectively
ed profut of 200,000. B's capital
000. B made additional investment
and 20,000 on Dec. 31, and made

he partners in the profit

Total
30,000.00
53,333.33
16,666.67
45,000.00
-
145,000.00

Total
100%
100,000.00
14,500.00
85,500.00
200,000.00