- This topic has 1 reply, 2 voices, and was last updated 7 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘Patnership’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for March 2025 exams.
Get your discount code >>
Forums › FIA Forums › FA2 Maintaining Financial Records Forums › Patnership
X and y are in partnership sharing profits equally with the exception of irrecoverable receivables which are borne 75% by x and 25% by y.The business profit for the year ended 30 June 20×5 was $ 576,000 after writing off irrecoverable amounts of $10,000.
How is the profit for the year to be divided between x and y?
X y
A.$ 285,500 $290,500
B.$ 293,000 $293,000
C.$ 280,500 $295,500
D.$ 288,000 $288,000
Please show all the calculations of x and y!
If there had been no write-off of irrecoverable amounts, the profit would have been 586,000, which would be split equally, so 298,000 to each.
Now account for the 10,000 write off, charging 75% to X and 25% to Y.