merson and Dakota formed a partnership dividing income as follows: Annual salary allowance to Emerson of $41,200 Interest of 10% on each partner's capital balance on January 1 Any remaining net income divided equally. Emerson and Dakota had $26,800 and $133,200, respectively, in their January 1 capital balances. Net income for the year was $206,400. How much net income should be distributed to Dakota?
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is 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, drawings of a partner, etc.
Emerson and Dakota formed a partnership dividing income as follows:
- Annual salary allowance to Emerson of $41,200
- Interest of 10% on each partner's capital balance on January 1
- Any remaining net income divided equally.
Emerson and Dakota had $26,800 and $133,200, respectively, in their January 1 capital balances. Net income for the year was $206,400.
How much net income should be distributed to Dakota?
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