3. A and B formed a partnership. The partnership agreement stipulates the following: Annual salary allowances of P10,000 for A and P40,000 for В. Bonus to A of 10% of the profit after partner's salaries but before bonus. • The partners share profits and losses on a 60:40 ratio. During the period the partnership incurred a loss of P20,000 before deduction for salaries. By what amount did B's capital account change? a. Increased by P12,000 b. Decreased by P12,000 c. Increased by P32,000 d. Decreased by P32,000
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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