Allocation of profits & losses among Partners: The profits & losses of a partnership are distributed among the partners on the basis of methods given in the partnership agreement. For example: on the basis of partner’s capital investment, service performed by the partners, combination of investment, service etc. If the partnership agreement is silent with regard to profit sharing or there is no agreement among the partners, then as per the law, the profits & losses shall be distributed equally among them. The profits and losses of a partnership can be allocated among the partners based on different parameters. These allocation parameters are as follows: a. On the basis of a mutually agreed Profit Sharing Ratio b. On the basis of Partners Capital Contributions c. On the basis of Services Performed by the partners d. On the basis of a combination of Fraction, Capital Contribution, Service, etc. e. If the partnership agreement is silent with regard to profit sharing or there is no agreement among the partners, then as per the law, the profits & losses shall be distributed equally among them. To Determine: Determine share of net income or net loss for ach of independent cases.

Question

What percentage of RBC’s total assets is held in investments (at October 31, 2020 and 2019)? refer to the 2020 financial statements and accompanying notes of Royal Bank of Canada (RBC). Note that RBC also holds a significant loan portfolio. What is the business reason for holding loans versus securities? Comment on how the investments are classified and presented on the balance sheet. What percentage of total interest income comes from securities (2020 and 2019)? Are there any other lines on the income statement or in OCI) relating to the securities? What percentage of net income (include any relevant OCI items) relates to securities (2020 versus 2019)? Calculate an approximate return on the investments in securities.

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Chapter 12, Problem E12.17E

To determine

Allocation of profits & losses among Partners: The profits & losses of a partnership are distributed among the partners on the basis of methods given in the partnership agreement. For example: on the basis of partner’s capital investment, service performed by the partners, combination of investment, service etc. If the partnership agreement is silent with regard to profit sharing or there is no agreement among the partners, then as per the law, the profits & losses shall be distributed equally among them.

The profits and losses of a partnership can be allocated among the partners based on different parameters. These allocation parameters are as follows:

a. On the basis of a mutually agreed Profit Sharing Ratio

b. On the basis of Partners Capital Contributions

c. On the basis of Services Performed by the partners

d. On the basis of a combination of Fraction, Capital Contribution, Service, etc.

e. If the partnership agreement is silent with regard to profit sharing or there is no agreement among the partners, then as per the law, the profits & losses shall be distributed equally among them.

To Determine:

Determine share of net income or net loss for ach of independent cases.

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