Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Noor Aliyah and Noor Ayeshah agree to venture into a partnership business and form the Noor & Noor Agency with the following partnership terms: a.
Noor Aliyah and Noor Ayeshah agree to venture into a partnership business and form the Noor & Noor Agency with the following partnership terms: a. Aliyah and Ayeshah will share the profit and loss of the business at a ratio of 60%:40% respectively. Ayeshah is entitled to a monthly salary of $25,000. Both partners are entitled to a 10% interest allowance on the beginning balance of their capital. At the beginning of the year, Aliyah has a balance of $450,000 in her Capital Account, whilst Ayeshah's Capital account shows a balance of $320,000. During the year, Ayeshah withdrew $100,000. The partnership's net income for 2020 was $110,000. Instruction: Distribute the net income and calculate how much each of the partners will receive
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started