Ending Partner balances Burns and Allan have formed a partnership and invested $20.000 and $40,000, respectively. They have agreed to share profits as follows: 1) Burns is to receive a "salary" of $20000 and Allan is to receive a "salary" of $30,000. 2) $30,000 is to be allocated according to their original capital contributions to the partnership. 3) The remainder is to be allocated 2:3 respectively Assuming that the business had a loss of $15.000, allocate the loss to Burns and Allan.

Ending Partner balances Burns and Allan have formed a partnership and invested $20.000 and $40,000, respectively. They have agreed to share profits as follows: 1) Burns is to receive a "salary" of $20000 and Allan is to receive a "salary" of $30,000. 2) $30,000 is to be allocated according to their original capital contributions to the partnership. 3) The remainder is to be allocated 2:3 respectively Assuming that the business had a loss of $15.000, allocate the loss to Burns and Allan.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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Question

Ending Partner balances
Burns and Allan have formed a partnership and invested $20.000 and $40,000, respectively. They have agreed to share profits as
follows:
1) Burns is to receive a "salary" of $20.000 and Allan is to receive a "salary" of $30,000.
2) $30.000 is to be allocated according to their original capital contributions to the partnership.
3) The remainder is to be allocated 2:3 respectively
Assuming that the business had a loss of $15000, allocate the loss to Burns and Allan.

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