Amy and Emma have been in partnership for a number of years, investing capital of £156,000 and £50,000 respectively. Details of the appropriation of partnership profits are as follows: Annual salary Share of residual profit Interest on capital Amy £65,000 35% 10% Emma £35,000 £155,735 £154,235 £120,735 None of these answers! 65% 5% If the profit for the year before appropriation was £300,000, what would Emma's entitlement in total be?

Amy and Emma have been in partnership for a number of years, investing capital of £156,000 and £50,000 respectively. Details of the appropriation of partnership profits are as follows: Annual salary Share of residual profit Interest on capital Amy £65,000 35% 10% Emma £35,000 £155,735 £154,235 £120,735 None of these answers! 65% 5% If the profit for the year before appropriation was £300,000, what would Emma's entitlement in total be?

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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