On 1 January 2014, Rex and Peterson entered into a partnership, contributing $100,000 and $120,000 respectively and sharing profits in the ratio of 1:2. Rex is allowed a salary of $10,000 and Peterson is allowed a salary of $15,000 per year. Interest on capital is allowed at 10% per annum. Rex and Peterson are entitled to receive a commission of $19,000. During the year, Rex withdrew $24,000 and Peterson $17,000; interest on the same being 12% per annum. Profit in 2014 before the above mentioned adjustments was $40,000. When you prepare the Profit and Loss appropriation account the final result of their business is (4 Marks) Select one: O A. Net Profit $4,080 O B. Net Loss $40,080 O C. Net Profit $85,000 O D. Net Loss $44,920 Previous page Next page