Bill and Bob Share Profits of Their Partnership in the Ratio

question 57

Multiple Choice

Bill and Bob share profits of their partnership in the ratio of 6:1 respectively.If the net income of the firm is $29,000,calculate the share of Bill's net income.

• A)$20,714
• B)$4,143
• C)$29,000
• D)$24,857

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Definitions:

General Ledger

The comprehensive set of accounts that shows all transactions of a business, serving as the main accounting record.

Accumulating Manufacturing Costs

The process of collecting and categorizing all costs involved in producing goods.

Raw Materials

Basic materials and substances used in the initial stages of production to create finished goods.

Job Order Cost System

An accounting system that assigns costs to specific production batches or jobs, useful for companies producing unique or custom products.