Answer:
Mr. J = $27,000
Mr. K = $24,000
Mr. L = $39,000
Explanation:
Partnership for the year 2018 = $90,000
Profit/(Loss) to be distributed:
= Partnership for the year 2018 - Bonus to Mr. J - Interest on average capital investment
= $90,000 - [20% × $90,000] - {(15% × $100,000) + (15% × $200,000) + (15% × $300,000)}
= $90,000 - $18,000 - [$15,000 + $30,000 + $45,000]
= ($18,000) ⇒ Loss
Loss to be allocated to each partner = ($18,000) ÷ 3
= ($6,000)
Therefore, the profit of $90,000 should be assigned to each partner is as follows:
Mr. J = $18,000 + $15,000 + ($6,000)
= $27,000
Mr. K = $30,000 + ($6,000)
= $24,000
Mr. L = $45,000 + ($6,000)
= $39,000
