Singer and McMann are partners in a business. Singer's original capital was $40,000 and McMann's was $60,000. They agree to salaries of $12,000 and $18,000 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses in a 3:2 ratio, what will Singer's share of the income be if the income for the year is $15,000?

Question

Quizplus · Accepted Answer

After accounting for salaries and interest on capital, the remaining profit is negative, leading to a loss. Singer's share of this loss is calculated based on the 3:2 ratio.

Singer and McMann Are Partners in a Business