Answered: Hockey LP Football LP Total $ 947,000 $…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Rugged Sports Enterprises LP is organized as a limited partnership consisting of two individual partners:
Hockey LP and Football LP. Compute partner return on equity for each limited partnership (and the total)
for the year using the following data from Rugged Sports Enterprises LP.

Hockey LP
Football LP
Total
$ 947,000
$ 758,000
445,473
Beginning-year balance
$189,000
Annual net income .
22,208
467,681
Cash distribution
(50,000)
(50,000)
Ending-year balance
$211,208
$1,153,473
$1,364,681

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions