Partnership : It is an organization in which two or more personsjoin together to do a business in which they all share profit and losses in an agreed ratio. One or more partners are acting in behalf of all partners. Each partner is responsible for the act of firm. Requirement-1: To calculate: The income of partner Year-1 Income Sharing Plan Calculations Partner 1 Partner 2 a. In Capital Investment (104:156) -36000 -14400 -21600 b. In Proportion of time devoted (1:3) -36000 -9000 -27000 c. Loss (A) -36000 Salary (B) (4000 per month) -48000 48000 Total Loss (A+B) (104:156) -84000 -33600 -50400 Total Share -33600 -2400 d. Capital Balance 260000 104000 156000 Loss (A) -36000 Salary (B) (4000 per month) -48000 48000 Interest on capital on opening balance @ 10% -26000 10400 15600 Total Loss (equally) -110000 -55000 -55000 Total Share -44600 8600 Concept Introduction: Partnership: It is an organization in which two or more person join together to do a business in which they all share profit and losses in an agreed ratio. One or more partners are acting in behalf of all partners. Each partner is responsible for the act of firm. Requirement-2: To calculate: The income of partner Year-2 Income Sharing Plan Calculations Partner 1 Partner 2 a. In Capital Investment (104:156) 76000 30400 45600 b. In Proportion of time devoted (1:3) 76000 19000 57000 c. Profit (A) 76000 Salary (B) (4000 per month) -48000 48000 Total Profit (A+B) (104:156) 28000 11200 16800 Total Share 11200 64800 d. Capital Balance 260000 104000 156000 Profit (A) 76000 Salary (B) (4000 per month) -48000 48000 Interest on capital on opening balance @ 10% -26000 10400 15600 Total Profit (equally) 2000 1000 1000 Total Share 11400 64600 Concept Introduction: Partnership: It is an organization in which two or more person join together to do a business in which they all share profit and losses in an agreed ratio. One or more partners are acting in behalf of all partners. Each partner is responsible for the act of firm. Requirement-3: To calculate: The income of partner Year-3 Income Sharing Plan Calculations Partner 1 Partner 2 a. In Capital Investment (104:156) 188000 75200 112800 b. In Proportion of time devoted (1:3) 188000 47000 141000 c. Profit (A) 188000 Salary (B) (4000 per month) -48000 48000 Total Profit (A+B) (104:156) 140000 56000 84000 Total Share 56000 132000 d. Capital Balance 260000 104000 156000 Profit (A) 188000 Salary (B) (4000 per month) -48000 48000 Interest on capital on opening balance @ 10% -26000 10400 15600 Total Profit (equally) 114000 57000 57000 Total Share 67400 120600

Connect Access Card for Financial Accounting: Information and Decisions

8th Edition

ISBN: 9781259662966

Author: John J Wild

Publisher: McGraw-Hill Education

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A manufacturing company allocates overhead at a fixed rate of $50 per hour based on direct labor hours. During the month, total overhead incurred was $375,000, and the total direct labor hours worked was 5,500. Job numbers 7-19 had 600 hours of direct labor. What is the amount of overhead allocated to job 7-19? a. $33,000 b. $28,500 c. $35,000 d. $30,000 help

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