How should the net income be distributed

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Reference no: EM132697550

May, June and July formed a partnership and agreed to maintain an average investment of P100,000, P50,000 and P50,000, respectively. Interest on any capital excess or deficiency is to be computed at 10%. After the interest allowance, the partners are to share the balance in the ratio of 5:3:2 for May, June and July, respectively. The actual amounts invested during the year were May P120,000; June P60,000; and July P35,000. Net profit was P12,500.

Problem 1: How should the net income be distributed?

Reference no: EM132697550

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