Greg, Graham and Gordon are partners. The partnership agreement provides that partners will receive interest of 8% of their average
Greg, Graham and Gordon are partners. The partnership agreement provides that partners will receive interest of 8% of their average capital balance and a salary allowance as follows:
Greg, who manages the business, will receive a bonus of 25% of the profit in excess of $90 000 after partners’ interest and salary allowances. Residual profits will be divided:
During the current year their average capital balances were as follows:
Prepare a schedule showing how profit will be divided among the three partners if the profit for the year before the adjustments is $320000.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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