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How much additional cash is to be invested by Sarah

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Question - The transportation equipment is subject to a mortgage loan of P1,125,000, which is to be assumed by the partnership. The partnership agreement provides that Sarah and Theo share profits and losses of 30% and 70%, respectively. Assuming that the partners agreed to bring their respective capital in proportion to their profit and loss ratio, using Theo capital as base, how much additional cash is to be invested  (withdrawn) by Sarah?

a. P(687,500)

c. P875,000

b. P(987,500)

d. P687,500

Reference no: EM132730128

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