Answered: If the profit is 100,000, how should…

Business

Accounting

If the profit is 100,000, how should the profit be distributed among the partners? Ciar? Jaybon?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 2PA: Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances...

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Question

Ciar and Jaybon are partners. Their capital contribution are as follows:
Ciar 400,000 and Jaybon will provide his services. The partners agreed to divide the profits or lossess in the ratio of 70% and 30% for Ciar and Jaybon, respectively.

If the profit is 100,000, how should the profit be distributed among the partners?
Ciar?
Jaybon?

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