Reference no: EM132821141
Problem 1: FIESTA, GUNSHOT, and HUSSEY form a partnership and agree to maintain average investments of P2,500,000, P1,250,000 and P1,250,000, respectively. Interest on the excess or deficiency in a capital contribution is to be computed at 6% per annum. After the interest allowances, FIESTA, GUNSHOT, and HUSSSEY are to share any balance in the ratio of 5:3:2. Average amounts invested during the first six months were as follows: FIESTA, P3,000,000; GUNSHOT, P1,375,000; and HUSSET, P1,000,000. A loss from operations of P62,500 was incurred for the first six months. How is this loss distributed among the partners FIESTA, GUNSHOT, and HUSSEY?
a) P12,500; P10,000; P49,500
b) P31,250; P18,750; P12,500
c) P21,875; P18,375; P22,250
d) P18,375; P21,875; P22,250
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