Division of Income?Interest on Capital Balances
Left and Right are partners. Their capital accounts during 20X1 were as follows:
Left, Capital | |||
8/23 | 6,000 | 1/1 | 30,000 |
|
| 4/3 | 8,000 |
|
| 10/31 | 6,000 |
Right, Capital | |||
3/5 | 9,000 | 1/1 | 50,000 |
|
| 7/6 | 7,000 |
|
| 10/7 | 5,000 |
|
Partnership net income is $50,000 for the year. The partnership agreement provides for the division of income as follows:
1. Each partner is to be credited 8 percent interest on his or her average capital.
2. Any remaining income or loss is to be divided equally.
Prepare an income distribution schedule.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.