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Jill, Jack and Jane are partners. During the current year their average capital balances were as follows:
Jill $60,000 Jack $40,000 Jane $20,000
The partnership agreement provides that partners shall receive an annual allowance of 5% of their average capital balance plus a salary allowance as follows:
Jack $12,000 Jane $11,000
Partner Jack, who manages the business, is to receive a bonus of 20% of the profits in excess of $15,000 after partners’ interest & salary allowances. Residual profits are to be divided:
Jill 1/2 Jack 1/3 Jane 1/6
schedule showing how profits will be divided among the three partners if the profit for the year is $68,000. Show your calculations clearly.
Partnership ln00me Jill Jack lane Capital Invested _ 500,000 $20,000ProÃ¯Â¬Ât _Ã¢â‚¬â€__Annual Allowance SlÃ¯Â¬â€šÃ¯Â¬â€šÃ¯Â¬â€š SlÃ¯Â¬â€šÃ¯Â¬â€šÃ¯Â¬â€šSalaommwance Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Total 0ioburoal la} $3,000 $10,000 $12,000…
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