Question
On January 1, 2018, the ABC partnership is formed. A, B and C contributed cash of OMR 420000 and OMR 360000 and 270000 respectively. Net
On January 1, 2018, the ABC partnership is formed. A, B and C contributed cash of OMR 420000 and OMR 360000 and 270000 respectively. Net income during the first year is OMR 480,000 and partners A, B and C shared profit and loss at a ratio of 1:2:2. The partnership agreed to provide 10 percent interest on opening capital balances and salaries of 25000, 30000, 40000 respectively. The rest will be divided according to income ratios.
What is Partner B's closing balance?
Step by Step Solution
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Step: 1
To determine Partner Bs closing balance we need to calculate several things The total opening capital of the partnership The interest earned on openin...
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Step: 3
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Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse
34th Edition
0135919460, 978-0135919460
