Sharing profit and losses when there is a residual loss Yvonne and Zara are in partnership, sharing profits and losses in the ratio 2:1. Their partnership agreement also states that:

• Partners should receive interest on their capitals at 8 percent per annum

• Yvonne should receive a partnership salary of 851,000 per annum.

The partners' capitals are:

The partnership made a small profit of 854 000 during the year ended 31 October 2014.

Calculate each partner's share of the profit for the year ended 31 October 2014.

Transcribed Image Text:

Yvonne 420 000 Zara 360 000 %24