Question
Harmawell Partnership has a profit of $150,000 for the year ended December 31, 2022. The partnership agreement states that profit and losses are to be
Harmawell Partnership has a profit of $150,000 for the year ended December 31, 2022. The partnership agreement states that profit and losses are to be distributed using salary allowances, 10% interest allowances on the partners beginning capital balance, and a ratio for the remainder. Information about the agreement and the balance of the Drawings accounts is contained in the table below. of 800 Maxwell $45,000 $65,000 ad us uso Salary allowance amounts: Capital balances at beginning of the year: Harlos P40 $35,000 700 $85,000 350 70 2 35 2 7 Wellington $20,000 $50,000 200 Remainder shared in this ratio: $25,000 $20,000 $15,000 Dec 31 balance of the Drawings accounts: Using a detailed schedule show & calculate how the profit would be allocated among the three partners.
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