PROBLEM 13: Distribution of Profits or Losses based on Partner’s Agreement

Pasia, Te, Ocenar each receive a P70,000 salaries, as well as 15% interest on their
respective average investments of P200,000, P100,000, and P400,000. If they share remaining
profits and losses in a 4:3:2 ratios, respectively, by how much would Ocenar account increase
or decrease (indicate a decrease by placing parentheses), assuming:
a. Profit of P405,000

PASIA TE OCENAR TOTAL

Salaries P70,000 P70,000 P70,000 P210,000
15% interest P30,000 P15,000 P60,000 P105,000
Pasia: P200,000 x 15%
Te: P100,000 x 15%
Ocenar: P400,000 x 15%
Remaining Profits to be P40,000 P30,000 P20,000 P90,000
divided (4:3:2)
P405,000 – P315, 000
Pasia: P90,000 x 4/9
Te: P90,000 x 3/9
Ocenar: P90,000 x 2/9
Share of Partner’s P140,000 P115,000 P150,000 P405,000
Profit