The Simra Brothers Partnership had the following statement of partners' equity for the years ended December 31, 2016, and 2017.

Required
1. What was the profit-and-loss-sharing ratio in 2016?
2. Refer to Amin's contribution, which was made in cash. How much cash did Amin contribute to the partnership?
3. What percentage of interest did Amin obtain?
4. Why do Harry and Sunny have additions to their balances as a result of Amin's contribution?
5. What was the profit-and-loss-sharing ratio in 2017?

Transcribed Image Text:

Simra Brothers Partnership Statement of Partners' Equity For the Years Ended December 31,2016 and 2017 Harry Simra, Capital $75,000 20,000 95,000 2,000 8,000 Sunny Simra, Capital Amin Simra, Capital Total Partnership Capital Balance, Jan. 1, 2016 Net income for 2016 Balance, Dec. 31, 2016 Amin's contribution Net income for 2017 $ 50,000 30,000 80,000 3,000 56,000 $125,000 50,000 175,000 50,000 80,000 $45,000 16,000 s partner withdrawals (12,000) $93,000 (16,000) $123,000 (10,000) $51,000 (38,000) $267,000 Balance, Dec. 31, 2017