The partnership of Chase and Chloe shares profits and losses in a 70:30 ratio respectively after Chloe receives a $14,000 salary. Prepare a schedule showing how theprofit and loss should be divided, assuming the profit or loss for the year is:If an amount is zero, enter "0". For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)A. $40,000ChaseChloeTotalSalaries$4Remaining income allocationTotal division of incomeB. $12,000ChaseChloeTotalSalariesRemaining income allocationTotal division of incomeC. S(10,000)ChaseChloeTotalSalariesRemaining income allocationTotal division of income%24%24%24%24%24%24%24%24

Profit Sharing Ratio = 70:30 Chloe will receive $14000 as salary

The partnership of Chase and Chloe shares profits and losses in a 70:30 ratio respectively after Chloe receives a $14,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is:

The partnership of Chase and Chloe shares profits and losses in a 70:30 ratio respectively after Chloe receives a $14,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is:

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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Concept explainers

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.

Question

The partnership of Chase and Chloe shares profits and losses in a 70:30 ratio respectively after Chloe receives a $14,000 salary. Prepare a schedule showing how the
profit and loss should be divided, assuming the profit or loss for the year is:
If an amount is zero, enter "0". For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)
A. $40,000
Chase
Chloe
Total
Salaries
$4
Remaining income allocation
Total division of income
B. $12,000
Chase
Chloe
Total
Salaries
Remaining income allocation
Total division of income
C. S(10,000)
Chase
Chloe
Total
Salaries
Remaining income allocation
Total division of income
%24
%24
%24
%24
%24
%24
%24
%24

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