Question

Zon, Tic and Ore are partners. Zon is an industrial partner. During the first year of operation, the firm realized a profit of P60,000. In the second year, the firm incurred a loss of P30,000. So, the total profit for the two years of operation was only P30,000. In the articles of co-partnership, it was agreed that Zon would get one-third of the profits, but would not share in the losses. How much will Zon, the industrial partner, get as her share?

a. Zon will get only P10,000, which is one-third of the total profit.
b. Zon will get P20,000 in the first year; none in the second year.
c. Zon will share in the loss incurred in the second year.
d. Zon will get P20,000 in the first year profit, and will bear P10,000 of the loss in the second year.

Answer 1

Zon, the industrial partner, will get P20,000 in the first year profit and will bear P10,000 of the loss in the second year, according to the articles of co-partnership.

Step-by-step explanation:

Zon, the industrial partner, will get P20,000 in the first year profit and will bear P10,000 of the loss in the second year. According to the articles of co-partnership, Zon is entitled to one-third of the profits but does not share in the losses.

The total profit for the two years of operation was P30,000. In the first year, the profit was P60,000, so Zon's share is P20,000 (one-third of P60,000). In the second year, the firm incurred a loss of P30,000, and Zon will bear one-third of the loss, which is P10,000.