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De Gana, Mariden (BSA202) - Cash Priority Program

The document shows the capital balances, loan balances, total interests, and profit/loss ratios of partners Bernardino, Lee, and Ong for their cash priority program. Ong would receive the first $625,000 of any cash proceeds based on her 20% profit/loss ratio. Any remaining proceeds up to $1,125,000 would be split 40% to Lee and 20% to Ong. Any additional amounts would be split according to the partners' profit/loss ratios.

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197 views2 pages

De Gana, Mariden (BSA202) - Cash Priority Program

The document shows the capital balances, loan balances, total interests, and profit/loss ratios of partners Bernardino, Lee, and Ong for their cash priority program. Ong would receive the first $625,000 of any cash proceeds based on her 20% profit/loss ratio. Any remaining proceeds up to $1,125,000 would be split 40% to Lee and 20% to Ong. Any additional amounts would be split according to the partners' profit/loss ratios.

Uploaded by

kookie bunny
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Bernardino, Lee and Ong

Cash Priority Program

Bernardino Lee Ong


Capital Balances 150,000.00 350,000.00 200,000.00
Add: Loan Balances 100,000.00 100,000.00 150,000.00
Total Partner's Interest 250,000.00 450,000.00 350,000.00
Divide by: Profits and Loss ratio 4:4:2 40% 40% 20%
Loss Absorption Balances 625,000.00 1,125,000.00 1,750,000.00
Priority 1: To Ong (625,000.00)
625,000.00 1,125,000.00 1,125,000.00
Priority 2: To Lee and Ong (500,000.00) (500,000.00)
625,000.00 625,000.00 625,000.00

Priority 3: Amounts in excess of


P425,000 based on P/L ratio

Cash Priority Payments Computations:

625,000 x 20% = 125,000


500,000 x 40% = 200,000 ; 500,000 x 20% = 100,000
200,000 + 225,000 = 425,000

Entries Computation:
1. Sale of non-cash assets
Cash ₱ 250,000.00 Priority 1: To Ong
Non-cash asstes ₱ 250,000.00 Priority 2: To Lee
2. Distribution of Cash to Partners Ong: 125,000 x 20/60
Ong, Capital 166,666.67 Lee: 125,000 x 40/60
Lee, Capital 83,333.33
Cash 250,000.00
Cash Priority Program
Bernardino Lee Ong

125,000.00

200,000.00 100,000.00
- 200,000.00 225,000.00

40% 40% 20%

Ong Lee Total


rity 1: To Ong 125,000.00 125,000.00
ity 2: To Lee 125,000.00
Ong: 125,000 x 20/60 41,666.67
Lee: 125,000 x 40/60 83,333.33
166,666.67 83,333.33 250,000.00

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