Ray Davies and Dave Davies formed a partnership, investing $ 260,000 and $ 180,000 respectively. The partnership agreement calls for a return of 10% interest on their original investment, Ray is to have a salary of $ 20,000 per year, Dave is to have a salary of $33,000 and the remainder divided in the ratio of 2:3. Determine the income distribution if the net income of the partnership for the year is $247,000.
Ray Davies Dave Davies
15-17. Given the information in 21 above, and with an additional investment in the partnership by Ray Davies of $20,000, and a withdrawal by Dave Davies of $5,000 please prepares a statement of Partner’s Equity.