A-S, M and Z form a partnership and agree to allocate income equally after recognition of 10% interest on beginning capital balances and monthly salary allowances of $ 2,000 to S and 1,500 $ to Z , Capital balances on January 1 were as follow :S $ 40,000, M$25,000 and Z$30,000 .

Required : 1- Calculate the net income ( loss ) allocation to each partner if the Net losses for the year is $ 38,300 and Journalize the allocation of net income .

After you solve the questions your answer must include the following items :

-Explain in details the journal entries ( why its recorded in debit or credit side ) and the nature of account Dr or Cr and its classification Assets , liabilities , owner's equity , Revenue or expenses .

-Define partnerships and explain it's types , characteristics and compare it with similar organizations .

-Explain the methods of profits and losses allocation .

-Illustrate how the partners can admit or withdraw from the partnerships .

-Define The Fair value and re-evaluation for assets and liabilities .

-Explain how can grant a bonus to old and new partner.