Patnership

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June 15, 2017 at 8:57 am #393226
leryn
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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!
June 15, 2017 at 11:47 am #393239
Ken Garrett
Keymaster
- Topics: 10
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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.
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