Nancy and Betty Enter into a Partnership Agreement Where They

question 154

Multiple Choice

Nancy and Betty enter into a partnership agreement where they decide to share profits according to the following rules:
(a) Nancy and Betty will receive salaries of $1,700 and $14,500 respectively as the first allocation.
(b) The next allocation is based on 20% of each partner's capital balances.
(c) Any remaining profit or loss is to be allocated completely to Betty.
The partnership's net income for the first year is $50,000.Nancy's capital balance is $83,000 and Betty's capital balance is $11,000 as at the end of the year.Calculate the share of profit/loss to be allocated to Betty.

• A)$18,300
• B)$31,700
• C)$3,760
• D)$16,100

---

Definitions:

Tarsometatarsal

Referring to the joint connections between the tarsal bones of the foot and the metatarsal bones of the forefoot.

Temporomandibular Joint

The joint connecting the jawbone to the skull, facilitating movements for chewing and speaking.

Articulation

Articulation is the physical production of speech sounds or the joining together of bones at a joint, facilitating movement.

Mandible

The lower jawbone, which is the largest and strongest bone in the human face, crucial for biting and chewing.