Question

Allison and josh are partners in a business. allisons capital is $60,000, and joshs capital is $100,000. profits for the year are $80,000. they agree to share profits and losses as follows:

Answer 1

Hi there

The share of profit and loss based on their proportion of their capital
Total capital is
100000+60000=160000

Allison's share of profit is
80,000×(60,000÷160,000)=30,000

joshs share of profit is
80,000×(100,000÷160,000)=50,000

Good luck!