Bally, Jeet and Candy have partnered to sell DVDs through their Bolly.com website.

They have not been very successful in the past year and for the year ending June 30, 2019, they posted a loss of $120,000. Your partnership agreement states the following:

• Interest on principal to be provided at 4% per annum

• Candy will be assigned a salary of $25,000 and Jeet $14,000

• No interest will be charged on the drawings

• Balance of profits to be distributed in the proportion 4:3:1.

The principal balances at the beginning of the year were as follows:

Bally $35,000

Jet $ 26,000

Caramel $40,000

How much profit or loss is assigned to Candy?

Answer rating: 100% (QA)

SOLUTION To calculate the profit or loss assigned to Candy we need to determine the partnerships net ... View the full answer