Jessie Penny & Co have three partners Julia, Smith and Nikki. During the current year their Capital balances were Julia$190,000, Smith $130,000 and Nikki $80,000. The partnership agreement provides that partners shall receive salary allowances as Julia $20,000, Smith $52,000 And Nikki $ 28,000. The partners shall also be allowed12% interest annually on their Capital balances. Residual profit and loss is to be divided Julia one half, Smith one-third, Nikki one-sixth. Required: Prepare separate schedule showing how income will be divided among the three partners in each of the following cases. The figures given in each case is the annual partnership net income or loss to be allocated among the partners. Income of 6,50,000 Income of 80,000 Loss of 25,000
Jessie Penny & Co have three partners Julia, Smith and Nikki. During the current year their Capital balances were Julia$190,000, Smith $130,000 and Nikki $80,000. The
Required: Prepare separate schedule showing how income will be divided among the three partners in each of the following cases. The figures given in each case is the annual partnership net income or loss to be allocated among the partners.
- Income of 6,50,000
- Income of 80,000
- Loss of 25,000
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