The Partnership of Raymond,Chabot and Grant divides profits in the ratio of 4:5:3.There is no provision for dividing losses.During 2014,the business experienced a loss of $40,000.Grant's share of the loss is:

Question

Quizplus · Accepted Answer

Since there is no provision for dividing losses, the loss is divided in the same ratio as profits. Grant's share is 3/12 of the total loss, which is $40,000 * (3/12) = $10,000.

The Partnership of Raymond,Chabot and Grant Divides Profits in the Ratio