. Prem, Kumar and Arti were partners in a firm sharing profits in the ratio of 5:3:2 respectively. On 31 March 2020, their balance sheet was as follows: Balance Sheet as at 31st March 2020 Liabilities (2) Assets (2) Capitals: Prem 25.000 Building Plant & Machinery 30,000 20,000 20,000 8,000 2,000 10,000 15,000 Kumar Investment 10,000 10,000 5,000 25,00 Arti Debtors Stock Cash General Reserve Investment Fluctuation Reserve Sundry Creditors 90,000 90.00 ont woro:
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.
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