Scribd Logo
Upload

Welcome to Scribd!

  • Exercise 3-1

    Uploaded by

    lheamaecayabyab4
    8 views5 pages
    The document outlines the capital balances and profit/loss distributions for three partners - Borres, Buendia, and Bustos. It shows their initial capital investments, how profits were distributed based on capital investment ratios and time devoted to the business, and how losses were distributed based on capital investment ratios. Profits were first distributed based on capital ratios of 25/50, 15/50, 10/50 and then time devoted of 3/4, 1/4, 1/2. Losses were distributed based on the same capital ratios.

    Original Description:

    Original Title

    EXERCISE 3-1 (1)

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document outlines the capital balances and profit/loss distributions for three partners - Borres, Buendia, and Bustos. It shows their initial capital investments, how profits were distributed based on capital investment ratios and time devoted to the business, and how losses were distributed based on capital investment ratios. Profits were first distributed based on capital ratios of 25/50, 15/50, 10/50 and then time devoted of 3/4, 1/4, 1/2. Losses were distributed based on the same capital ratios.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    8 views5 pages

    Exercise 3-1

    Uploaded by

    lheamaecayabyab4
    The document outlines the capital balances and profit/loss distributions for three partners - Borres, Buendia, and Bustos. It shows their initial capital investments, how profits were distributed based on capital investment ratios and time devoted to the business, and how losses were distributed based on capital investment ratios. Profits were first distributed based on capital ratios of 25/50, 15/50, 10/50 and then time devoted of 3/4, 1/4, 1/2. Losses were distributed based on the same capital ratios.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 5

    CAYABYAB, LHEA MAE O.

    BSA1
    CAPITAL BALANCES
    ENTRY: DR CR
    INCOME SUMMARY 500,000.00
    BORRES, CAPITAL 250,000.00
    BUENDIA, CAPITAL 150,000.00
    BUSTOS, CAPITAL 100,000.00

    RATIO OF CAPITAL INVESTMENTS


    25/50:15/50:10/50
    50:30:20

    PROFIT DISTRIBUTION PROFIT 600,000.00


    ENTRY: DR CR
    INCOME SUMMARY 600,000.00
    BORRES, CAPITAL 300,000.00
    BUENDIA, CAPITAL 180,000.00
    BUSTOS, CAPITAL 120,000.00

    RATIO OF TIME DEVOTED IN THE BUSINESS


    3/4:1/4:1/2
    75:25:50

    ENTRY DIVISION OF INCOME PROFIT 600,000.00


    DR CR
    INCOME SUMMARY 600,000.00
    BORRES, CAPITAL 450,000.00
    BUENDIA, CAPITAL 150,000.00
    BUSTOS, CAPITAL 300,000.00
    TOTAL 600,000.00 900,000.00

    ENTRY DIVISION OF LOSS NET LOSS 300,000.00


    DR CR
    INCOME SUMMARY 300,000.00
    BORRES, CAPITAL 150,000.00
    BUENDIA, CAPITAL 90,000.00
    BUSTOS, CAPITAL 60,000.00

    ENTRY PROFIT BALANCES NET PROFIT 600,000.00


    DR CR
    INCOME SUMMARY 600,000.00
    BORRES, CAPITAL 300,000.00
    BUENDIA, CAPITAL 60,000.00
    BUSTOS, CAPITAL 240,000.00
    ### NET LOSS
    TOTAL CAPITAL BALANCES
    BORRES 250,000.00
    BUENDIA 150,000.00
    BUSTOS 100,000.00
    500,000.00

    BORRES 600,000.00 BUENDIA 600,000.00


    0.50 (25/50) 0.30 (15/50)
    300,000.00 180,000.00

    BUSTOS 600,000.00
    0.20 (10/50)
    120,000.00
    TO COMPUTE THE PROFIT DIVIDED IN RATIO OF CAPITAL INVESTMENTS

    BORRES 600,000.00 BUENDIA 600,000.00


    0.75 (3/4 TIME) 0.25
    450,000.00 150,000.00

    BUSTOS 600,000.00
    0.50
    300,000.00
    TO COMPUTE THE DIVISION OF PROFIT DIVIDED IN RATIO OF TIME DEVOTED IN THE BUSINES

    BORRES 300,000.00 BUENDIA 300,000.00


    0.50 (25/50) 0.30
    150,000.00 90,000.00

    BUSTOS 300,000.00
    0.20
    60,000.00
    TO COMPUTE THE DIVISION OF LOSS DIVIDED IN RATIO OF CAPITAL INVESTMENTS
    (1/4 TIME)

    (1/2 TIME)

    DEVOTED IN THE BUSINESS

    (15/50)

    (10/50)
    APITAL INVESTMENTS

    You might also like