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  3. (c) on 1 july 2018, jack, john and jill formed the

(c) On 1 July 2018, Jack, John and Jill formed the J, J and J...

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Accounting

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(c) On 1 July 2018, Jack, John and Jill formed the J, J and J partnership. Jack invested $21 000, John $35 000 and Jill $44 000. Jack will manage the store, John will work in the store three-quarters of the time, and Jill won't work in the business. Required: 1. Calculate the partners' shares of profits and losses under each of the following plans: a. Loss for the year ended 30 June 2019 is $42 000 and the partnership agreement allocates 45% of profits to Jack, 35% to John and 20% to Jill. The agreement doesn't discuss the sharing of losses. (4 Marks) b. Profit for the year ended 30 June 2019 is $97 000. The first $25 000 is allocated on the basis of relative partner capital balances. The next $48 000 is based on service, with $38000 going to Jack and $10 000 going to John. Any remainder is shared equally. (4 Marks) 2. Revenues for the year ended 30 June 2019 were $209 000 and expenses were $112 000. Using plan b above, prepare the partnership income statement for the year (and showing each partner's share of the profit or loss for the year). (2 Marks)

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