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Ching and frank formed a partnership by making capital contributions of 184,000 and 156000 receptively. the partners agreed that they would receive an annual salary allowance of 30000 and 16000 receptively and interest of their int ital capital investments of 8. a;; remaining income or loss is to be divided in a ratio of 3:2
During the first year 2017, the partnership recored a net loss of 56000
required:
Question 1: Show and label how the net loss would be divided bewtween ching and frank
Question 2: Prepare journal entry required on Dec 31, 2017 to transfer the net loss to partners equity
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