Partners Cantor and Dickens have capital balances in a partnership of $153000 and $241000, respectively. They agree to share profits and losses as follows: Cantor Dickens As salaries $39100 $49000 As interest on capital at the beginning of the year 10% 10% Remaining profits or losses 50% 50% If net loss for the year was $8100, what will be the allocation to Dickens

$69,050

Explanation:

Net loss would imply that the salaries and interest on capital have already been deducted from income thus leaving the partners with a net loss.

Dicken's allocation would be:

= Salary + Interest on capital + share of profit

= 49,000 + (10% * 241,000) + (50% * -8,100)

= 49,000 + 24,100 - 4,050

= $69,050

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