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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

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

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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  1. 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.

  1. How can partnership profits and losses be allocated.

 

Please I need answer for these questions. Thanks

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