Maddy and Maxie are running a coffee shop.. They agree that Maddy will receive a wage for
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Maddy and Maxie are running a coffee shop.. They agree that Maddy will receive a wage for operating the shop whilst Maxie will contribute $50,000 to finance the start-up and the balance of the profits and losses thereafter is to be split 40% to Maddy and 60% to Maxie. The accounts for the year ended 30 June 2020 were as follows:
The sale of Food and drinks received $250,000
Cost of consumables $80,000
Cost of rent $50,000
Wages to Maddy $40,000
There are no other relevant transactions.
What is the net income of the partnership?
Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
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