Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card
Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card
22nd Edition
ISBN: 9781259542169
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 12, Problem 12E
To determine

Concept Introduction:

Partner Return on Equity:

Partner Return on Equity is the rate of return earned by the partner on their investment in the company. It is calculated with the help of following formula:

  Return on Partner's Equity = Net IncomeAverage Partners Equity

The Average Partner’s equity calculated with the help of following formula:

  Average partners equity=( Beginning partners equity + Ending partners equity)2

To calculate:

The Partner Return on Equity

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