Helen and Casey are partners.Helen contributes capital of $20,000 to the partnership and Casey contributes $10,000.They agree that Helen will receive 60 percent of all profits and that Casey will receive 40 percent.They have not decided how to share losses.The partnership makes a loss of $7,000.What is Casey's share of the loss?
A)$2,800
B)$4,200
C)$3,500
D)$5,500

Question

Quizplus · Accepted Answer

When the partnership agreement is silent on how to share losses,losses are shared in the same proportion that profits are shared.The basis of this rule is the presumption that partners want to share benefits and detriments in the same proportions.

Helen and Casey Are Partners