Dividing Partnership Net IncomeRequired:Steve Conyers and Chelsy Dane formed a partnership, dividing income as follows:Annual salary allowance to Dane of $172,260.Interest of 6% on each partner's capital balance on January 1.Any remaining net income divided to Conyers and Dane, 1:2.Conyers and Dane had $87,000 and $87,000, respectively, in their January 1 capital balances. Net income for the year was $297,000. How much is distributed to Conyers and Dane?Note: Compute partnership share.Conyers: $Dane: $

Please see the below computation for the distribution of share to Conyers and Dane -

Answered: Dividing Partnership Net Income…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 3SEB

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Dividing Partnership Net Income

Required:

Steve Conyers and Chelsy Dane formed a partnership, dividing income as follows:

Annual salary allowance to Dane of $172,260.
Interest of 6% on each partner's capital balance on January 1.
Any remaining net income divided to Conyers and Dane, 1:2.

Conyers and Dane had $87,000 and $87,000, respectively, in their January 1 capital balances. Net income for the year was $297,000. How much is distributed to Conyers and Dane?

Note: Compute partnership share.
Conyers: $
Dane: $

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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