Reed and Sioux established a partnership and divided their profits as follows: Emerson will receive an annual salary allowance of $41,200 and a 10% interest rate on each partner's capital as of January 1. Equal distribution of any residual net profits. The capital balances at January 1 for Reed and Sioux were $34,000 and $146,000, respectively. $232,800 was the net profit for the year. What portion of the net income should be given to Dakota? [Fill in the blank] 1
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is 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, drawings of a partner, etc.
![Reed and Sioux established a partnership and divided their profits as follows:
Emerson will receive an annual salary allowance of $41,200 and a 10% interest rate on each partner's
capital as of January 1.
Equal distribution of any residual net profits.
The capital balances at January 1 for Reed and Sioux were $34,000 and $146,000, respectively. $232,800
was the net profit for the year.
What portion of the net income should be given to Dakota?
[Fill in the blank] 1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F43f14e1f-491e-4a82-9d39-0c30e44695e1%2Fff8ba914-3c1c-422a-9fb8-030e91890e0e%2F35qyg7l_processed.jpeg&w=3840&q=75)
Step by step
Solved in 3 steps
