Aarush, Advik and Azad are partners. The partnership agreement provides that partners will receive interest of 8% of their average capital balance and a salary allowance as follows: $50,000 $40,000 $40,000 Aarush Advik Azad Aarush, who manages the business, will receive a bonus of 25% of the profit in excess of $90 000 after partners interest and salary allowances have been deducted. Residual profits will be divided: Aarush (half) Advik (one third) Azad (one sixth) During the current year their average capital balances were as follows: $250,000 $150,000 $90,000 Aarush Advik Azad Required Prepare a schedule showing how profit will be divided among the three partners if the profit for the year before the adjustments is $320 000.

Aarush, Advik and Azad are partners. The partnership agreement provides that partners will receive interest of 8% of their average capital balance and a salary allowance as follows: $50,000 $40,000 $40,000 Aarush Advik Azad Aarush, who manages the business, will receive a bonus of 25% of the profit in excess of $90 000 after partners interest and salary allowances have been deducted. Residual profits will be divided: Aarush (half) Advik (one third) Azad (one sixth) During the current year their average capital balances were as follows: $250,000 $150,000 $90,000 Aarush Advik Azad Required Prepare a schedule showing how profit will be divided among the three partners if the profit for the year before the adjustments is $320 000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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