Question
The partnership contract of A,B and C provided for the division of net income and losses in the following manner. Bonus of 20% of income
- The partnership contract of A,B and C provided for the division of net income and losses in the following manner.
- Bonus of 20% of income before bonus and allowances to A
- Interest 15% on average capital account balances to each partner
- Remaining income or loss, equally to each partner.
Net income for A, B and C Partnership for 2019 was 90,000 and the average capital account balances for that year were A, 100,000, B, 200,000 and C, 300,000. How much of the 90,000 partnership profit should be distributed to A?
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Financial Accounting
Authors: Robert Libby, Patricia A Libby
7th Edition
0078111021, 9780078111020
