Bert and Ernie agree to share profits and losses in the ratios 6:4. If the net loss is $30,000, how much loss is allocated to each partner?
A) Bert $18 000; Ernie $12 000
B) Bert $12 000; Ernie $18 000
C) Bert $20 000; Ernie $10 000
D) Bert $26 000; Ernie $4 000

Question

Quizplus · Accepted Answer

The ratio of profit and loss sharing is 6:4, which means out of the total loss of $30,000, Bert's share will be 6/10th, and Ernie's share will be 4/10th. 
Bert's share = (6/10) x $30,000 = $18,000 
Ernie's share = (4/10) x $30,000 = $12,000 
Therefore, the allocated loss to Bert is $18,000, and to Ernie is $12,000, which is given in option A.

Bert and Ernie Agree to Share Profits and Losses in the Ratios