Question

Library Hours CengageNow.2 Online te * genow.com/ kessignment/ take m oer AugmentSession Locatori progresse Calculator wing for sales of $15.000 and $31,200, respectively. If the partnership suffers a $16,200 France and Jason share income and losses in a 2:1 ratio after loss, by how much would lon's capital account increase a. 125.000 O $10,400 O. 31,200 $20.800 SSBT

Answer 1

Ans. (a) $25800,

solution:

Distribution of loss to jason = $16200*1/3 = 5400

salary to jason = $31200

hence:

net increase in capital= $31200-$5400 = $25800

any loss to partnership is debited to partners capital Account in the profit and loss sharing ratio.