Problemthe partnership agreement of jones king and lane, Ask an Expert

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The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence:

• Jones, the managing partner, receives a bonus equal to 20 percent of the business's profit.
• Each partner receives 11 percent interest on average capital investment.
• Any residual profit or loss is divided equally.

The average capital investments for 2015 were as follows:

Jones $ 195,000
King 390,000
Lane 585,000

How much of the $90,000 partnership profit for 2015 should be assigned to each partner?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92793848

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