In: Accounting
The Sunland Partnership reported profit of $61,300 for the year
ended February 28, 2021. Salary allowances are $47,000 for H. Mills
and $26,600 for S. Stone. Interest allowances of 6% are calculated
on each partner's opening capital account balance. Capital account
balances at March 1, 2020, were as follows: H. Mills $75,200 (Cr.)
and S. Stone $48,700 (Cr.). Any remainder is shared equally.
Calculate the division of profit to each partner.
H. Mills | S. Stone | |||
---|---|---|---|---|
Profit allocated to partners |
$enter a dollar amount | $enter a dollar amount |
H.Mills | S.Stone | Total | |
Profit | $ 61,300 | ||
Salary Allowances | $ 47,000 | $ 26,600 | $ 73,600 |
Interest allowances | $ 4,512 | $ 2,922 | $ 7,434 |
Total Salary and interest allocation | $ 51,512 | $ 29,522 | $ 81,034 |
Balance of Profit | $ -19,734 | ||
Balance allocated equally | $ -9,867 | $ -9,867 | $ -19,734 |
Balance of Profit | $ - | ||
Shares of Partners | $ 41,645 | $ 19,655 | $ 61,300 |