Chi Chu

January 1 capital balance P 100,000 P 150,000

Permanent Withdrawals of capitals:
July 1…………………………… (10,000)
June 1…………………………… (50,000)
Additional investment of capital:
Aug 1……………………………. 90,000
Nov 1……………………………. 20,000
December 31 capital balance P 180,000 P 120,000
Compute for the share of each partner of the –
Partnership Profit = P150,000
Partnership Loss = P20,000

I. Equally
II. Ratio of 30% and 70%, respectively
III. Capital ratio
a. Beginning Capital
b. Ending Capital
c. Average Capital

EQUALLY
If Profit:
Share of each partner = P150,000/2
Share of each partner = P75,000

Income Summary P150,000

Chi, Drawing P75,000
Chu, Drawing 75,000

If Loss:
Share of each partner = P20,000/2
Share of each partner = P10,000

Chi, Drawing P10,000

Chu, Drawing 10,000
Income Summary P20,000
RATIO OF 30% & 70%,
If Profit:
CHI: P150,000 * 30% = P45,000
CHU: P150,000 * 70% = 105,000

Income Summary P150,000

Chi, Drawing P45,000
Chu, Drawing 105,000

If Loss:
CHI: P20,000 * 30% = P6,000
CHU: P20,000 * 70% = 14,000

Chi, Drawing P6,000

Chu, Drawing 14,000
Income Summary P20,000

BEGINNING CAPITAL RATIO

If Profit:
CHI: P150,000 * (100,000/250,000) = P60,000
CHU: P150,000 * (150,000/250,000) = 90,000

If Loss:
CHI: P20,000 * (100,000/250,000) = P8,000
CHU: P20,000 * (150,000/250,000) = 12,000

ENDING CAPITAL RATIO

If Profit:
CHI: P150,000 * (180,000/300,000) = P90,000
CHU: P150,000 * (120,000/300,000) = 60,000

If Loss:
CHI: P20,000 * (180,000/300,000) = P12,000
CHU: P20,000 * (120,000/300,000) = 8,000
 Chi Chu
January 1 capital balance P 100,000 P 150,000
Permanent Withdrawals of capitals:
July 1…………………………… (10,000)
June 1…………………………… (50,000)
Additional investment of capital:
Aug 1……………………………. 90,000
Nov 1……………………………. 20,000
December 31 capital balance P 180,000 P 120,000

AVERAGE CAPITAL RATIO

CHI, CAPITAL
Date Amount Number of months Total
until Dec. 31
Jan. 1 P 100,000 12 P 1,200,000
Jul. 1 (10,000) 6 (60,000)
Aug. 1 90,000 5 450,000
Total 1,590,000
Divided by: 12
Average capital P 132,500

CHU, CAPITAL
Date Amount Number of months Total
until Dec. 31
Jan. 1 P 150,000 12 P 1,800,000
Jun. 1 (50,000) 7 (350,000)
Nov. 1 20,000 2 40,000
Total P 1,490,000
Divided by: 12
Average capital P 124,166.67

If Profit:
CHI: P150,000 * (132,500/256,666.67) = P77,435.06
CHU: P150,000 * (124,166.67/256,666.67) = 72,564.94

If Loss:
CHI: P20,000 * (132,500/256,666.67) = P10,324.68
CHU: P20,000 * (124,166.67/256,666.67) = 9,675.32