Salim and Rashid form a partnership, investing OR 80,000 and OR 120,000, respectively. Required: Determine their shares of net income: Net income is OR 60,000. The first OR 30,000 is shared on the basis of partner capital balances. The next OR 20,000 is based on partner services, with Salim getting 40% and Rashid 60%. The remainder is shared equally. How can partnership profits and losses be allocated. Please I need answer for these questions. Thanks
Salim and Rashid form a partnership, investing OR 80,000 and OR 120,000, respectively. Required: Determine their shares of net income: Net income is OR 60,000. The first OR 30,000 is shared on the basis of partner capital balances. The next OR 20,000 is based on partner services, with Salim getting 40% and Rashid 60%. The remainder is shared equally. How can partnership profits and losses be allocated. Please I need answer for these questions. Thanks
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- Salim and Rashid form a
partnership , investing OR 80,000 and OR 120,000, respectively.
Required: Determine their shares of net income:
Net income is OR 60,000. The first OR 30,000 is shared on the basis of partner capital balances. The next OR 20,000 is based on partner services, with Salim getting 40% and Rashid 60%. The remainder is shared equally.
- How can partnership
profits and losses be allocated.
Please I need answer for these questions. Thanks
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