Reference no: EM133051731
Question - Jennie and Lisa 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 2012 and 2013 of operations:
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Year 2012
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Year 2013
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Operating revenues
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P980,000
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P320,000
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Operating expenses
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820,000
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380,000
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Instruction - Determine how the partners would share the income or loss for each year under each of the following assumptions:
1. Jennie and Lisa failed to include stated ratios in the partnership agreement.
2. The partners agreed to share income or losses equally.
3. The partners agreed to share in the ratio of 3:5 for Jennie and Lisa, respectively.
4. The partners agreed to share in the ratio of 1/3 and 1/6 for Jennie and Lisa, respectively.
5. The partners agreed to share income and losses through 40% and 50% to Jennie and Lisa, respectively.