Hong and Si Are in Partnership Sharing Residual Profits and Losses

question 44

Multiple Choice

Hong and Si are in partnership sharing residual profits and losses 50:50.The profit for the year is $140 000.Hong is entitled to a salary of $40 000 per annum to be paid by means of a book entry) .Calculate the amount credited to Hong's retained earnings account after the final distribution of profits.

• A)$90 000
• B)$80 000
• C)$100 000
• D)$70 000

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Definitions:

Breast

A tissue located on the chest that contains the mammary glands, capable of producing milk.

Descent

The act or process of moving from a higher to a lower position.

Fetus

A developing mammal or human within the womb, after the embryonic stage and until birth.

Pelvis

A basin-shaped structure in the skeleton located at the lower part of the trunk, composed of the hip bones, sacrum, and coccyx.