On January 2, Nyu and Sunu formed a partnership. Nyu contributed capital of 175,000 and Sunu, 25,000. Their profit and loss ratio is 8:2. Sunu is the general manager and works in the partnership full time. Sunu is given a salary of 5,000 a month; an interest of 5% of the beginning capital (of both partners) and a bonus of 15% profit before salary, interest, and bonus. The income statement account balances for the year ended December 31, 2018 shows the following: Net Sales of 875,000; Cost of Goods Sold of 700,000; Expenses (including salary, interest, and bonus) 143,000. The amount of bonus to Sunu in 2018 amounted to _____.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
On January 2, Nyu and Sunu formed a
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