Tim and Bev Are Partners Who Share Profits and Losses

question 23

Multiple Choice

Tim and Bev are partners who share profits and losses in the ratio of 6:4.Their capital balances are $35,000 and $20,000,respectively.If Jenny is admitted to the partnership for $25,000 for a one-fourth interest,her capital balance will be:

• A)$26,667.
• B)$20,000.
• C)$25,000.
• D)$13,750.

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Definitions:

Husband's Estimate

A presumably subjective assessment or judgment made by a husband, often humorously referred to in the context of informal decisions or guesses.

Promotional Campaigns

Marketing efforts designed to communicate the value of a product or service to customers, with the aim of increasing awareness or sales.

Gross Sales

The total revenue generated from all sales activity before any deductions are made for returns, allowances, or discounts.

Coupons

Certificates or electronic codes that offer a discount on the purchase price of goods or services.