Introduction to partnership agreement


Partners E and F have written the given partnership agreement:

Partners will share income based on:

1) Salaries of $40,000 to E and $50,000 to F and

2) Any balance in a ratio of 1:2

a) Find out the distribution of income if the total income this year was $130,000.

b) Find out the distribution of income if the total income for the year was $90,000.

3) Give the closing entry for either of the above conditions.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Introduction to partnership agreement
Reference No:- TGS023080

Expected delivery within 24 Hours