Division of Net Income Jamison Stephens Total Salary allowance $ 20000 $ 12000 $ 32000 Remaining income Total division $ $ $

Accounting Jan 19, 2021

Expert Solution

In a partnership, the remaining income after allowing the Salary allowance or any other payment like interest etc are distributed to partners in the Profit sharing ratio.

Division of Netincome

	Jamison	Stephens	Total
Salary Allowance	20,000	12,000	32,000
Remaining Income	10,800	7,200	18,000
Total Division	30,800	19,200	50,000

The Remaining income after Salary allowance is distributed in the 60,40 ratio. (18,000*60% and 18,000*40%)

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