Albert, Billy, and Cathy share profits and losses of their partnership as 3:5:4, respectively. If the net income is $30,000, calculate Albert's share of the profits. (Do not round any intermediate calculations. Round the final answer to the nearest dollar.) O $12,500 O $7500 O $10,000 O $15,000
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Ratio = 3:5:4
Total ratio=3+5+4
=12
So Albert's share will be 3/12
Billy's share will be 5/12
and Cathy's share will be 4/12
Net income=$30,000
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