Bob and Jack form a partnership, contributing 33,000 and 77,000 respectivley. De
ID: 2468935 • Letter: B
Question
Bob and Jack form a partnership, contributing 33,000 and 77,000 respectivley. Determine their shares of net income or net loss for each of the following indapendent situations.
a. Net loss is 110,000 and the partners have no written partnership agreement
b. Net income is 120,000 and the partnership agreement states that the partners share profits and losses on the basis of their capitol balances.
c. Net income is 180,000. The first 108,000 is shared on the basis of capitol balances. The next 54,000 is based on the partner service, with Bob recieving 60% and Jack 40%. The remainder is shared equally.
Determine their shares of net income or net loss for each independent situations.
Bob Jack Total a. b. c.Explanation / Answer
In partnership firm, The profits and losses are shared as per the partnership deed. In absence of the partnership deed, profits and losses are shared equally.
Bob Jack Total a (55000) (55000) (110000) b 36000 84000 120000 c 64800 115200 180000