Partnership Profit and Loss Sharing

Partner's Sharing of Profits and Losses

• Partners X, Y, and Z share profits and losses in the ratio of 9:6:5.
• Initial capital balances before admitting a new partner:
  • Partner X: $90,000
  • Partner Y: $60,000
  • Partner Z: $40,000

Increase in Capital Contributions

• Partnership deed dated 1.1.18 outlines increases in capital contributions:
  • Sakary: $2,000
  • Field Capital: $8,000
  • Harsakh Capital: $2,000

Calculation of Increase Capital

• Increase Capital Calculation:
  • Total increase calculated as $4,000 over 12 months is based on $4,200 increment.
• Sakary's Contribution:
  • $2,000 is directly added.
• Paget's Contribution:
  • $24,000 increase allocated as $9,000 calculated using the formula $24,000 x (13/6) x (9/12).
• Graduated Increases:
  • $2,000 increase multiplied by (2/3) equals $2,000.
  • $12,000 increase multiplied by (1/2) equals $6,000.