Partnership net income of $68,000 is to be divided between two partners, Veronica Hansen and Cecilia Robinson, according to the following arrangement: There will be salary allowances of $25,000 for Hansen and $18,000 for Robinson, with the remainder divided 60% to Hansen and 40% to Robinson. How much of the net income will be distributed to Hansen and Robinson, respectively?
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.
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