Richard and Liz are in a partnership and have agreed to share profits and losses in a

Question:

Richard and Liz are in a partnership and have agreed to share profits and losses in a ratio of 4: 6, respectively. Determine how much their capital will increase or decrease if the partnership has

(a) Net in-come of $ 56,000 and

(b) A net loss of $ 26,000.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...