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Partnership Operation DAVID, RODRIGO and BORJA formed a commercial partnership in May 30, 2020. DAVID invested...

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: ______________

Solutions

Expert Solution

THE SOLUTION FOR SHARES OF  PROFIT AND LOSSES IN DIFFERENCE CASES 4 AMONGS THE PARTNERS ARE GIVEN IN THE UPLOAD IMAGES.

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