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Partners Withdrawals Toni Graff, Ahmad Nu, and Lindsay Pane are partners in Travel
Chapter 27, Problem 27-8(choose chapter or problem)
Partners’ Withdrawals
Toni Graff, Ahmad Nu, and Lindsay Pane are partners in Travel Essentials. Their partnership agreement stated that withdrawals would be 10 percent for each partner based on the partnership’s net profits or net losses recorded for the year. In the first year of operation, the partnership reported $25,000 in net profit.
Instructions Prepare the entry to record the withdrawals of Graff, Nu, and Pane based on the partnership agreement. Use the journal paper provided in your working papers.
Analyze Explain how the $25,000 in profit would be shared among Graff, Nu, and Pane.
Questions & Answers
QUESTION:
Partners’ Withdrawals
Toni Graff, Ahmad Nu, and Lindsay Pane are partners in Travel Essentials. Their partnership agreement stated that withdrawals would be 10 percent for each partner based on the partnership’s net profits or net losses recorded for the year. In the first year of operation, the partnership reported $25,000 in net profit.
Instructions Prepare the entry to record the withdrawals of Graff, Nu, and Pane based on the partnership agreement. Use the journal paper provided in your working papers.
Analyze Explain how the $25,000 in profit would be shared among Graff, Nu, and Pane.
ANSWER:
Step 1 of 2
A partnership firm is a type of business organization in which two or more people come together to carry out the business and share its profit and losses.