Practice Exercise 6-3: (Profit or Loss Distribution - No agreement, Equally, Arbitrary Ratio) Ann and Dox contributed P150,000 and P300,000 cash, respectively, to put up the capital for a cell phone...


Practice Exercise 6-3: (Profit or Loss Distribution - No agreement, Equally, Arbitrary Ratio)<br>Ann and Dox contributed P150,000 and P300,000 cash, respectively, to put up the capital for a<br>cell phone loading business. The business had normal first year problems, but during the<br>second year the operation was very successful. The company reported the following key<br>operating performance figures for 2019 and 2020 of operations:<br>Year 2019<br>Operating revenues<br>Operating expenses<br>Year 2020<br>P320,000<br>380,000<br>P980,000<br>820,000<br>Instruction: Determine how the partners would share the income or loss for each year under<br>each of the following assumptions:<br>a. Ann and Dox failed to include stated ratios in the partnership agreement.<br>Year 2019<br>Ann<br>Dox<br>Property of and for the exclusive use of SLU. Reproduction, storing in a retrieval system, distributing, uploading or posting online, or transmitting in any form or by any<br>means, electronic, mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written permission of SLU, is strictly prohibited. 22<br>Year 2020<br>Ann<br>Dox<br>b. The partners agreed to share income or losses equally.<br>Year 2019<br>Ann<br>Dox<br>Year 2020<br>Ann<br>Dox<br>c. The partners agreed to share in the ratio of 3:5 for Ann and Dox, respectively<br>Year 2019<br>Ann<br>Dox<br>Property of and for the exclusive use of SLU. Reproduction, storing in a retrieval system, distributing, uploading or posting online, or transmitting in any fom or by any<br>means, electronic, mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written permission of SLU, is strictly prohibited. 23<br>23 / 32<br>Year 2020<br>Ann<br>d. The partners agreed to share in the ratio of 1/3 and 1/6 for Ann and Dox, respectively.<br>Year 2019<br>Ann<br>Dox<br>Year 2020<br>Ann<br>Dox<br>e. The partners agreed to share income and losses through 40% and 50% to Ann and Dox,<br>respectively.<br>Year 2019<br>Ann<br>Dox<br>Year 2020<br>Ann<br>Dox<br>24 / 32<br>...<br>•..<br>•..<br>

Extracted text: Practice Exercise 6-3: (Profit or Loss Distribution - No agreement, Equally, Arbitrary Ratio) Ann and Dox contributed P150,000 and P300,000 cash, respectively, to put up the capital for a cell phone loading business. The business had normal first year problems, but during the second year the operation was very successful. The company reported the following key operating performance figures for 2019 and 2020 of operations: Year 2019 Operating revenues Operating expenses Year 2020 P320,000 380,000 P980,000 820,000 Instruction: Determine how the partners would share the income or loss for each year under each of the following assumptions: a. Ann and Dox failed to include stated ratios in the partnership agreement. Year 2019 Ann Dox Property of and for the exclusive use of SLU. Reproduction, storing in a retrieval system, distributing, uploading or posting online, or transmitting in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written permission of SLU, is strictly prohibited. 22 Year 2020 Ann Dox b. The partners agreed to share income or losses equally. Year 2019 Ann Dox Year 2020 Ann Dox c. The partners agreed to share in the ratio of 3:5 for Ann and Dox, respectively Year 2019 Ann Dox Property of and for the exclusive use of SLU. Reproduction, storing in a retrieval system, distributing, uploading or posting online, or transmitting in any fom or by any means, electronic, mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written permission of SLU, is strictly prohibited. 23 23 / 32 Year 2020 Ann d. The partners agreed to share in the ratio of 1/3 and 1/6 for Ann and Dox, respectively. Year 2019 Ann Dox Year 2020 Ann Dox e. The partners agreed to share income and losses through 40% and 50% to Ann and Dox, respectively. Year 2019 Ann Dox Year 2020 Ann Dox 24 / 32 ... •.. •..
Jun 11, 2022
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