Bums and Allan have formed a partnership and invested $20 000 and $40,000, respecti follows: 1) Burns is to receive a "salary of $20,000 and Allan is to receive a salary" of $30,0 2) $30000 is to be allocated according to their original capital contributions to the pan 3) The remainder is to be allocated 2:3 respectively Assuming that the business had a loss of $15000, allocate the loss to Burns and Allan.
Bums and Allan have formed a partnership and invested $20 000 and $40,000, respecti follows: 1) Burns is to receive a "salary of $20,000 and Allan is to receive a salary" of $30,0 2) $30000 is to be allocated according to their original capital contributions to the pan 3) The remainder is to be allocated 2:3 respectively Assuming that the business had a loss of $15000, allocate the loss to Burns and Allan.
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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Transcribed Image Text:Bums and Allan have formed a partnership and invested $20,000 and $40,000, respectively. They have agreed to share profits as
follows:
1) Burns is to reccivé a "salary" of $20,000 and Allan is to receive a "salary" of $30,000.
2) $30,000 is to be allocated according to their original capital contributions to the partnership.
3) The remainder is to be allocated 2:3 respectively
Assuming that the business had a loss of $15.000, allocate the loss to Burns and Allan,
Ending capital balances to each partner?
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ISBN:
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Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT