Question

Dividing Partnership Net Income Required: Steve Qua d Chelsy Poodle formed a partnership, dividing income as follows: 1. Annus salary allowance to Queen of $152.450 2. Interest on ench partner's capital balance on January 1 3. Any remaining net income divided to Queen and Poodle, 1:2 $51,000 and $93.000, respectively in the way I capital balances. Not come for the year was $285,000. How much is distributed to Queen and Poodle Queen and Poodle? Note: Comoute partnership share Ques

Answer 1

Answer

Queen	$203,510
Poodie	$81,490

--Working

	Queen	Poodie	Net Income available (distributed)
Net Income			$285,000
Interest on Capital (7%)	$3,570	$6,510	($10,080)
			$274,920
Salary Allowance	$162,450		($162,450)
			$112,470
Remaining $ 112470 in ratio 1:2	$37,490	$74,980	($112,470)
Total Net Income distributed	$203,510	$81,490	$0