A partnership has the following accounting amounts:
(1)Sales
$70,000
(2)Cost of Goods Sold = $40,000
(3)Operating Expenses = $10,000
(4)Salary allocations to partners = $13,000
(5)Interest paid to banks = $2,000
(6)Partners' withdrawals = $8,000
Partnership net income (loss) is ____.

Question

A partnership has the following accounting amounts:
(1)Sales 
$70,000
(2)Cost of Goods Sold = $40,000
(3)Operating Expenses = $10,000
(4)Salary allocations to partners = $13,000
(5)Interest paid to banks = $2,000
(6)Partners' withdrawals = $8,000
Partnership net income (loss) is ____.

Quizplus · Accepted Answer

Salary allocations and withdrawals are not expenses of the partnership. Net income is calculated as follows:
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A Partnership Has the Following Accounting Amounts