John and Paul are partners who share profits and losses in the ratio of 3:2 respectively. Their salaries were: • John's salary $180,000 • Paul's salary $140,000. The partners are paid interest on their average capital balances where they received interest of: • John $30,000 • Paul $15,000. The profit and loss allocation is determined after deduction for the salary and interest payments. If John received $280,000 from partnership income, what was the total partnership income?

John and Paul are partners who share profits and losses in the ratio of 3:2 respectively. Their salaries were: • John's salary $180,000 • Paul's salary $140,000. The partners are paid interest on their average capital balances where they received interest of: • John $30,000 • Paul $15,000. The profit and loss allocation is determined after deduction for the salary and interest payments. If John received $280,000 from partnership income, what was the total partnership income?

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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