John and Paul are partners who share profits and losses in the ratio of 3:2 respectively. Their salaries were: • John's salary $180,000 • Paul's salary $140,000. The partners are paid interest on their average capital balances where they received interest of: • John $30,000 • Paul $15,000. The profit and loss allocation is determined after deduction for the salary and interest payments. If John received $280,000 from partnership income, what was the total partnership income?
John and Paul are partners who share profits and losses in the ratio of 3:2 respectively. Their salaries were: • John's salary $180,000 • Paul's salary $140,000. The partners are paid interest on their average capital balances where they received interest of: • John $30,000 • Paul $15,000. The profit and loss allocation is determined after deduction for the salary and interest payments. If John received $280,000 from partnership income, what was the total partnership income?
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PB: The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a...
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Transcribed Image Text:John and Paul are partners who share profits and losses in the ratio of 3:2 respectively.
Their salaries were:
• John's salary $180,000
• Paul's salary $140,000.
The partners are paid interest on their average capital balances where they received interest of:
• John $30,000
• Paul $15,000.
The profit and loss allocation is determined after deduction for the salary and interest payments.
If John received $280,000 from partnership income, what was the total partnership income?
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