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