Dante,Milton,and Cervantes formed a partnership and agreed to share profits in a 3:1:2 ratio after recognition of 5% interest on average capital balances and monthly salary allowances of $3,750 to Milton and $3,000 to Cervantes.Average capital balances were as follows:
Required:
Compute the net income (loss)allocated to each partner assuming the partnership incurred a $27,000 net loss.

Question

Dante,Milton,and Cervantes formed a partnership and agreed to share profits in a 3:1:2 ratio after recognition of 5% interest on average capital balances and monthly salary allowances of $3,750 to Milton and $3,000 to Cervantes.Average capital balances were as follows:
  Required:
Compute the net income (loss)allocated to each partner assuming the partnership incurred a $27,000 net loss.

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The Answer of Dante,Milton,and Cervantes formed a partnership and agreed to share profits in a 3:1:2 ratio after recognition of 5% interest on average capital balances and monthly salary allowances of $3,750 to Milton and $3,000 to Cervantes.Average capital balances were as follows:
  Required:
Compute the net income (loss)allocated to each partner assuming the partnership incurred a $27,000 net loss.

Dante,Milton,and Cervantes Formed a Partnership and Agreed to Share Profits