X, Y and Z of XYZ Partnership have beginning capital balances of P500,000, P400,000, and P300,000 respectively. The firm has obtained a net profit of P112,000 Salaries of P15,000, P20,000, and P25,000 will be given to each partner respectively, and interest at 3% of the beginning capital balances would be allowed in profit distribution. Any remaining amount will be divided to each partner at 3:11 the share of each partner in the net income would be A.P28.080 P50.560: P33.360 B.P28,080, P35,200; P48,720 C.P39,600 P35,2 10, P37,200 D. P35,600, P-50,5-50; P21,540
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.
Step by step
Solved in 4 steps
