Pls heLp me..you decided to join the partnership of August and April . August has a capital of 50 pesos , while April puts up a capital of 75 pesos . the three of you decided that your profit and loss ratio would be 1:2:3 for August , April and yourself, you further agreed to make your capitalization equal to your profit sharing ratio. How much additional capital should April and yourself to make your capital contributors equal to your profit and loss sharing ratio...thanks
So, assuming August's share of capitalization is unchanged at 50, then
1:2:3 = 50:100:150
That shows how much the others need to invest.
you decided to join the partnership of august and april. august has a capital of ₱50 000 while april puts up a capital of ₱75 000. the three of you decided that your profit and loss ratio would be 1:2:3 for august,april and yourself you further agreed to make your capitalization equal to your profit sharing ration. how much additional capital should april and yourself to make your capital contributions equal to your profit and loss sharing ration?
To determine how much additional capital April and yourself should contribute to make your capital contributors equal to your profit and loss sharing ratio, we need to calculate the total capital and each partner's capital contribution.
1. Calculate the total capital:
Total capital = August's capital + April's capital + Your capital
Total capital = 50 pesos + 75 pesos + Your capital
2. Calculate the profit and loss sharing ratio:
August:April:Yourself = 1:2:3
3. Since you agreed to make your capitalization equal to your profit sharing ratio, your capital will be three times your profit share:
Your capital = 3 * (August's capital share)
4. Substituting the profit sharing ratios into the equation:
Total capital = 50 pesos + 75 pesos + 3 * (August's capital share)
5. Since August's capital share is 1, we can simplify the equation:
Total capital = 50 pesos + 75 pesos + 3 * (50 pesos)
6. Simplifying further:
Total capital = 50 pesos + 75 pesos + 150 pesos
Total capital = 275 pesos
7. Now we can calculate each partner's required capital contribution based on the profit sharing ratio:
August's required capital = Total capital * (August's profit share / Sum of profit shares)
August's required capital = 275 pesos * (1 / (1+2+3))
April's required capital = Total capital * (April's profit share / Sum of profit shares)
April's required capital = 275 pesos * (2 / (1+2+3))
Your required capital = Total capital * (Your profit share / Sum of profit shares)
Your required capital = 275 pesos * (3 / (1+2+3))
8. Calculate each partner's required capital contribution:
August's required capital = 275 pesos * (1 / 6)
April's required capital = 275 pesos * (2 / 6)
Your required capital = 275 pesos * (3 / 6)
Therefore, to make your capital contributors equal to your profit and loss sharing ratio, April should contribute an additional 91.67 pesos (275 pesos * 2 / 6) and yourself should contribute an additional 137.50 pesos (275 pesos * 3 / 6).
To find out how much additional capital April and yourself need to make your capital contributors equal to your profit and loss sharing ratio, we need to calculate the total capital contributed by all partners and compare it to the profit and loss sharing ratio.
1. Start by calculating the total capital contributed by all partners:
Total Capital = August's Capital + April's Capital + Your Capital
= 50 pesos + 75 pesos + Your Capital
2. Next, calculate the total profit and loss sharing ratio:
Total Ratio = 1 + 2 + 3
= 6
3. To make the capital contributors equal to the profit and loss sharing ratio, each partner's capital should be proportional to their profit sharing ratio. This means the capital should be divided among the partners using the ratio: 1:2:3.
4. Calculate the additional capital needed for April:
April's Additional Capital = Profit Sharing Ratio * Total Capital - April's Capital
= (2/6) * (Total Capital) - 75 pesos
5. Calculate the additional capital needed for yourself:
Your Additional Capital = Profit Sharing Ratio * Total Capital - Your Capital
= (3/6) * (Total Capital) - Your Capital
By substituting the appropriate values from earlier calculations, you can determine the additional capital amount required for April and yourself.