Able 400000 martin 350000 philip 150000 compute the net


Question - Able, Martin, and Philip formed a partnership and agreed to share profits in a 4:3:3 ratio after recognition of 4% interest on average capital balances and monthly salary allowances of $ 4,000 to Martin and $ 3,500 to Philip. Average capital balances were as follows: Able 400,000, Martin 350,000, Philip 150,000. Compute the net income (loss) allocated to each partner assuming the partnership incurred a $ 30,000 net loss?

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