The partnership agreement of Ahmad, Fatima, and Ali provides for annual distribution of profit and...
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Accounting
The partnership agreement of Ahmad, Fatima, and Ali provides for annual distribution of profit and loss in the following sequence: Fatima, the managing partner, receives a bonus of 10% of net income. Each partner receives 5% interest on average capital investment. Residual profit or loss is to be divided 4:2:4. Average capital investments for 2019 were: Ahmad $270,000 Fatima $180,000 Ali $120,000 At the end of 2019, the partnership reported net loss before interest, salaries, and bonus of $30,000.
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