the following is the Income Statement
Sales 50,000
COGS (30,000)
Gross Profit 20,000
Expenses (4,000)
Net Profit 16,000
The profit is shared among 3 partners in the ratios: 3:8:4
the profit comes out to be:
(3/15)*16000 = 3200
(8/15)*16000 = 8533
(4/15)*16000 = 4267
but the answer is:
4900
4500
6600
where am i going wrong in dividing up the profit in the given ratios?
regards
mansoor
FIA Forums
Partner Accounts Question
12y ago#1What you have done is correct. Are you sure you have typed out the full question?
i think i found my mistake. i still have to apportion the profits.
what got me was that in the answer they had the apportionment right after the net profit figure in the income statement. and the apportionment calculations were yet to be done.
thank for replying ... sorry for the bother.. exam in ten days...so getting jittery..:)
12y ago#3No problem :-)
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