L. Eron and A. Pilott are partners who share income and losses in the ratio of...
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L. Eron and A. Pilott are partners who share income and losses in the ratio of 3:2 respectively. The balance in the Profit and Loss account on December 31, 2018, prior to distribution to the partners, is $20,800. Before distribution profits to the partnership in the agreed ratio, L. Eron is to be given credit for interest on his loan of $60,000, outstanding for the entire year, at 6% per annum. A. Pilott is to receive a bonus of 10% of the net income over $5,100, after deducting the bonus to himself and the interest to L. Eron. Giving consideration to all the above information, Calculate the total amount of net income to be credited to A. L. Eron and A. Pilott are partners who share income and losses in the ratio of 3:2 respectively. The balance in the Profit and Loss account on December 31, 2018, prior to distribution to the partners, is $20,800. Before distribution profits to the partnership in the agreed ratio, L. Eron is to be given credit for interest on his loan of $60,000, outstanding for the entire year, at 6% per annum. A. Pilott is to receive a bonus of 10% of the net income over $5,100, after deducting the bonus to himself and the interest to L. Eron. Giving consideration to all the above information, Calculate the total amount of net income to be credited to A.
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Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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