Sam and Al have decided to form Its a dog's life, a partner ship. Both agreed Sam wld invest 16,00 and Al 24,000. Sam devotes full time to the business and Al half time.
a equal division
b ratio of original investments
c ratio of time devoted to the business
d 10% interest on original investments and remainder ratio of 3:2
e10% original investment, salary allowances of 30,000 to Sam and 15,000 to Al, remainder equally
f plan e except Sam is allowed a bonus equal to 20% of the amount by which Net Income exceeds alary allowance.