Answer and Explanation:
Given that the salary allowances of Leigh Meadows and Byron Leef in the partnership are $47000 and $41000 respectively
Net loss is $24000
Also remainder income or loss is shared equally between the two partners
Total salaries of the two partners =$47000+$41000= $88000
Total Remainder loss= -$112000(because -112000+88000=-$24000)
Since partners share the remainder losses equal, they each share the losses -$56000
Net loss is shared is shared -9000 and -15000 between Meadows and Byron respectively
Net loss is calculated salary allowance +remainder loss
Answer:
Division = (net loss for the current year + salary Allowance) / 2
= (Remainder / 2)
= $112,000 / 2
= $56,000
See net loss in explanation.
Explanation:
Total Salary Allowances = Leigh Meadows salary + Byron Leef salary
= $47,000 + $ 41,000
=$88,000
Remainder (net loss for the current year + salary Allowance)
= $24,000 + $88,000
= $112,000
Net loss for Leigh Meadows = $47,000 - $56,000 = -$9,000
Net loss for Byron Leef = $41,000 - $56,000 = -$15,000
Net loss for Total salary allowances = $88,000 - $112,000 = -$24,000
