DIVISION OF PARTNERSHIP EARNINGS

profit-and-loss ratio.

ATKINS, CAPITAL Date Debit Credit Balance Jan. 1 Balance . . . . . . . . . . . . . $162,000 $162,000 July 1 Additional Investment . . . 50,000 212,000 Sept. 3 Permanent reduction . . . . $30,000 $182,000 BRILL, CAPITAL Date Debit Credit Balance Jan. 1 Balance . . . . . . . . . . . . . $126,000 $126,000 COREY, CAPITAL Date Debit Credit Balance Jan. 1 Balance . . . . . . . . . . . . . $72,000 $72,000 Sept. 5 Additional investment. . . . 20,000 92,000

Net income is to be divided by allowing interest at 10% annually on the partners beginning of- the-year investment capital and dividing the remainder 6/3/1 respectively. a. The current years operations produced a $300,000 net income. b. The current years operations produced an $80,000 net loss.

In this question I don't understand how they got the 6/3/1 ratio?

Can you please explain to me hoe to calculate this so I can see the 6/3/1 ratio?

Thanks, George. Alberta Canada