Question

Bill and Bob share profits of their partnership in the ratio of 6:1 respectively. If the net income of the firm is $29,000, calculate the share of Bill's net income.

Answer 1

The share of bill net income is $24,857

Step-by-step explanation:

The computation of the share of bill net income is shown below:

Given that

Profit sharing ratio of Bill and BOb is 6 : 1

And, the net income of the firm is $29,000

So, the share of bill net income is

= Net income × bill share

= $29,000 × 6 ÷ 7

= $24,857

Hence, the share of bill net income is $24,857

We simply applied the above formula so that the correct value could come

And, the same is to be considered