Podcast
Questions and Answers
What is the profit and loss sharing ratio among partners X, Y, and Z?
What is the profit and loss sharing ratio among partners X, Y, and Z?
What was the total capital balance of all partners before admitting a new partner?
What was the total capital balance of all partners before admitting a new partner?
How much capital was contributed by Harsakh?
How much capital was contributed by Harsakh?
Which of the following formulas correctly calculates the increase capital for Paget?
Which of the following formulas correctly calculates the increase capital for Paget?
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What is the total increase in capital from Sakary, Field Capital, and Harsakh Capital combined?
What is the total increase in capital from Sakary, Field Capital, and Harsakh Capital combined?
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Study Notes
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
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Increase Capital Calculation:
- Total increase calculated as $4,000 over 12 months is based on $4,200 increment.
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Sakary's Contribution:
- $2,000 is directly added.
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Paget's Contribution:
- $24,000 increase allocated as $9,000 calculated using the formula $24,000 x (13/6) x (9/12).
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Graduated Increases:
- $2,000 increase multiplied by (2/3) equals $2,000.
- $12,000 increase multiplied by (1/2) equals $6,000.
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Description
This quiz focuses on the concept of profit and loss sharing among partners in a partnership. It examines capital contributions and ratios as per partnership deeds, providing a practical scenario for analysis. Test your understanding of how profits and losses are shared among partners.
