Philip and Lance have decided to form a partnership by investing ($100000) and ($80000) respectively. The following

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Philip and Lance have decided to form a partnership by investing \($100000\) and \($80000\) respec­tively. The following plans for dividing profits and losses are under consideration.


  1. Sharing profits equally
  2. A \($20000\) salary to Philip, a \($30000\) salary to Lance, and the remainder in the ratio of 6:4
  3. A \($25000\) salary to Lance, 8% interest on their original investments, and the remainder equally

Sharing profits in the ratio of their original investments

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Accounting

ISBN: 9780730382737

11th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie

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