Reference no: EM133122674

Question - Accounting for partnerships - Blanc & Nathan use Method 1 to account for their partnership. They have agreed to share profits as follows:

Blanc receives a $90,000 salary and Nathan receives a $70,000 salary.

Each partner receives interest of 4% on their closing capital balances.

Remaining profit is to be shared equally (50% each) between Blanc & Nathan.

At 30 June 2020 Blanc's closing capital balance was $250,000 and Nathan's closing capital balance was $200,000.

For the year ended 30 June 2020, the partnership made a profit of $278,000.

Required -

Prepare workings for the allocation of profit?

Prepare ONLY the general journal to record the share of profit distributed to Blanc & Nathan at 30 June 2020 in the template below (Narration is NOT required).