The profit allocation by A is:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A,B, C run a partnership.

A does not work in the business. As a result, B receives an annual salary of 78000,  C receives 39000.

Alsom the partnership agrees to pay an interest of 10% of their capital balance. For any remaining profit after salary and interest, they will share based on their agreed fixed ratios.

A: Capital of 45000,  Profit and loss sharing:20%

B: Capital of 50000, Profit and loss sharing:25%

C: Capital of 50000, Profit and loss sharing :55%

The profit for the year ended is 130000

The profit allocation by A is:

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