Dividing partnership income, Accounting Basics

Assignment Help:

Dividing Partnership Income

Desmond Drury and Ty Wilkins have decided to form a partnership. They have agreed that Drury is to invest $44,700 and that Wilkins is to invest $104,300. Drury is to devote full time to the business, and Wilkins is to devote one-half time. The following plans for the division of income are being considered:

a. Equal division.
b. In the ratio of original investments.
c. In the ratio of time devoted to the business.
d. Interest of 10% on original investments and the
remainder in the ratio of 3:2.
e. Interest of 10% on original investments, salary
allowances of $101,400 to Drury and $50,700 to
Wilkins, and the remainder equally.
f. Plan (e), except that Wilkins is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances.

For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $447,000 and (2) net income of $196,800.

(1) Net income of (2) Net income of
$447,000 $196,800
Plan Drury Wilkins Drury Wilkins
a. $ $ $ $
b. $ $ $ $
c. $ $ $ $
d. $ $ $ $
e. $ $ $ $
f. $ $ $ $ #question..


Related Discussions:- Dividing partnership income

Calculate breakeven analysis, Breakeven Analysis - I really need help calcu...

Breakeven Analysis - I really need help calculating this. Our company's breakeven point occurs after the agency consecutively yields two months of positive net income. This a

Defination of Accounting, Define Accounting. Briefly explain the accounting...

Define Accounting. Briefly explain the accounting concepts which guide the accountant at the recording stage.on..

Asset, exploration costs for mining companies are assts

exploration costs for mining companies are assts

Accounting process in operation, Accounting process in operation Micro ...

Accounting process in operation Micro Train Corporation is a small corporation that provides on-site personal computer software training using the clients' equipment. The compa

The ratio of __________ to __________ is an example, The ratio of _________...

The ratio of __________ to __________ is an example of a __________ ratio. A. quick assets; current liabilities; leverage B. cost of goods sold; total assets; asset utilization

Final accounts, stpes to be taken prepaing for final accounts

stpes to be taken prepaing for final accounts

On december 31, On December 31, 2013, a company issues bonds with a par val...

On December 31, 2013, a company issues bonds with a par value of $600,000. The bonds mature in 10 years, and pay 6% annual interest, payable each June 30 and December 31. The bon

Debits and Credits, When does something that is a debit becomes a credit?

When does something that is a debit becomes a credit?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd