Farrell and Jimmy Enter into a Partnership Agreement on 1

question 28

Multiple Choice

Farrell and Jimmy enter into a partnership agreement on 1 May 2017.Farrell contributes $50,000 and Jimmy contributes $160,000 as their capital contributions.They decide to share profits and losses in the ratio of their respective capital account balances.The net profit for the year ended 31 December 2017 is $60,000.Which of the following amounts should be credited to Jimmy's capital account?

• A)$45,714
• B)$60,000
• C)$14,286
• D)$50,000

---

Definitions:

College-aged Men

This term refers to young men who are typically between the ages of 18 and 22, usually enrolled in higher education institutions.

Vitamins

Organic compounds that are essential in small amounts for the body to function and maintain health.

Minerals

Naturally occurring inorganic substances with a definite chemical composition and crystal structure, essential for various bodily functions.

Immune System

The body's defense mechanism against infectious organisms and other invaders, comprising various cells, tissues, and organs.