Lynn Carpenter and Matthew Fredrick formed a partnership in which the partnership agreement provided for salary allowances of $39,000 and $34,000, respectively. Determine the division of a $20,000 net loss for the current year, assuming that remaining income or losses are shared equally by the two partners. Use the minus sign to indicate any deductions or deficiencies. Lynn Carpenter Matthew Fredrick Total Salary Allowance $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Remainder $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Net Loss $fill in the blank 7 $fill in the blank 8 $fill in the blank 9
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.
Dividing
Lynn Carpenter and Matthew Fredrick formed a partnership in which the partnership agreement provided for salary allowances of $39,000 and $34,000, respectively.
Determine the division of a $20,000 net loss for the current year, assuming that remaining income or losses are shared equally by the two partners. Use the minus sign to indicate any deductions or deficiencies.
| Lynn Carpenter | Matthew Fredrick | Total | |||
| Salary Allowance | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 | ||
| Remainder | $fill in the blank 4 | $fill in the blank 5 | $fill in the blank 6 | ||
| Net Loss | $fill in the blank 7 | $fill in the blank 8 | $fill in the blank 9 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
