The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit for the year 1 is A S40,000 8. $25,000 C $100,000 In addition, show the resulting entries to each partner's capital account. Tatum's capital account balance is S50,000 and Brook's is S60,000. A. Tatum *To complete: S40,000 - 10,000 - 15,000- Brook Total Salaries Then, take a percentage off the resut. Meaning what is o of the resut This will give you Remaining Income Allocation Remaing Income Allocation Total Division of Income Ltly, total your hems and they should equal out te the S40.000. Debit Credit Income Summary Tatum Capital Income Summary Brook Capital B. Tatum Brook Total Salaries Remaing Income Allocation %24 Total Division of Income %24 Debit Credi Income Summary Tatum Capital Income Summary Brook Capital C. Tatum Brook Total Salaries Remaing Income Allocation %24 Total Division of income %24 Credi Income Summanry Tatum Capital Income Summany Brook Capital SSS
The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit for the year 1 is A S40,000 8. $25,000 C $100,000 In addition, show the resulting entries to each partner's capital account. Tatum's capital account balance is S50,000 and Brook's is S60,000. A. Tatum *To complete: S40,000 - 10,000 - 15,000- Brook Total Salaries Then, take a percentage off the resut. Meaning what is o of the resut This will give you Remaining Income Allocation Remaing Income Allocation Total Division of Income Ltly, total your hems and they should equal out te the S40.000. Debit Credit Income Summary Tatum Capital Income Summary Brook Capital B. Tatum Brook Total Salaries Remaing Income Allocation %24 Total Division of Income %24 Debit Credi Income Summary Tatum Capital Income Summary Brook Capital C. Tatum Brook Total Salaries Remaing Income Allocation %24 Total Division of income %24 Credi Income Summanry Tatum Capital Income Summany Brook Capital SSS
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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Concept explainers
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.
Question
100%
Transcribed Image Text:The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Taturm receives a 10,000 salary and
Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit for the year
1 is
A $40,000
B. $25,000
C $100,000
In addition, show the resulting entries to each partner's capital account. Tatum's capital account balance is $50,000 and Brook's is
$60,000.
6.
7.
10
A.
Tatum
Brook
Total
To complete: $40,000- 10,000-15,000 =
11
12
Salaries
Then, take a percentage off the result. Meaning what is G0% of the result.
Remaing Income Allocation
Total Division of Income
13
S.
This will give you Remaining ncome Allocation.
14
Lastly, total your items and they should equal out to the $40,000.
15
16
Debit
Credt
Income Summary
Tatum Capital
17
18
19
Income Summary
Brook Capital
20
21
22
23
B.
Tatum
Brook
Total
Salaries
Remaing Income Allocation
Total Division of Income
24
25
26
27
28
Debit
Credt
Income Summary
Tatum Capital
29
30
31
Income Summary
Brook Capital
32
S.
34
C.
Tatum
Brook
Total
Salaries
Remaing Income Allocation
Total Division of Income
30
37
38
39
40
Income Summary
Tatum Capital
41
42
43
Income Summary
Brook Capital
45
40
SSS
%24
Transcribed Image Text:The partnership of Magda and Sue shares profits and losses In a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a
$6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year Is:
A. $10,000
B. $5,000
5O
$1
52
C. ($12,000) LOSS
In addition, show the resulting entries to each partner's capital account.
53
54
55
A.
Magda
Sue
Total
56
Salarles
Remaing Income Allocation
Total Division of Income
57
58
59
60
Debit
Credit
Income Summary
Madga, Capital
61
62
63
Income Summary
Sue, Capital
64
65
66
67
В.
Magda
Sue
Total
Salaries
Remaing Income Allocation
Total Division of Income
68
69
70
71
72
Debit
Credit
Income Summary
Magda Capital
73
74
75
Income Summary
Sue, Capital
76
77
78
C.
Salaries
Remaing Income Allocation
Total Division of Income
79
Magda
Total
To Complete: 13,500 + 12,000 (loss) = 25,500
Sue
80
Then, take a percentage off the result.Which is 50/50 apit.
81
S.
This will give you Remaining Income Allociation,
82
Lastiy, total your items and they should equal out to the $12 000
24
Debit
Credit
Magda, Capital
Income Summary
85
For this one, vou need to DEDUCT the S,750 from Capital then Income Summary,
86
Capital s debit, income summaryis credit,
87
Sue, Capital
Income Summary
88
89
SSS
SSS
SSS
%24
%24
SSS
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