Simon and Keith Have a Profit and Loss Sharing Agreement

question 37

Multiple Choice

Simon and Keith have a profit and loss sharing agreement where: (1) salaries of $30 000 each are credited, (2) 6% interest is allowed on capital balances (3) the remaining profit or loss is split 75-25, respectively. At the end of the year, before the distribution of profits or losses, capital account balances were $40 000 for Simon and $20 000 for Keith. There was a profit of $50 000 before distributions to the partners. What is Keith's year-end capital account balance assuming capital balances are adjusted to reflect profits and losses?

• A) $47 800
• B) $54 600
• C) $62 200
• D) $82 600

---

Definitions:

Major Responsibilities

The key duties or tasks that are essential for the successful performance of a job or role.

Typical Workday

A standard or average day of work, often characterized by specific hours and routine tasks.

Cultural Cues

Non-verbal signals or behaviors that are specific to a particular culture and convey meaning within that cultural context.

Nonverbal Cues

Communication signals that do not involve spoken words, such as body language, facial expressions, and tone of voice.