Bill Ace and Dennis Bud are partners in an urban restaurant called Salt. Profit for the year

Question:

Bill Ace and Dennis Bud are partners in an urban restaurant called Salt. Profit for the year ended March 31, 2020, is $120,000.

a. How much profit should be allocated to each partner assuming there is no partnership agreement?

b. Prepare the entry to allocate the profit.

c. Prepare the entry to allocate the $120,000 assuming it is a loss.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...

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