Partners Cantor and Dickens have capital balances in a partnership of $161000 and $236000, respectively. They agree to share profits and losses as follows: Cantor Dickens As salaries $39400 $48100 As interest on capital at the beginning of the year 10% 10% Remaining profits or losses 50% 50% If net loss for the year was $8500, what will be the distribution to Dickens?
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.
Partners Cantor and Dickens have capital balances in a
| Cantor | Dickens | |
| As salaries | $39400 | $48100 |
| As interest on capital at the beginning of the year | 10% | 10% |
| Remaining profits or losses | 50% | 50% |
If net loss for the year was $8500, what will be the distribution to Dickens?
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