3. A and B formed a partnership. The partnership agreement stipulates the following: Monthly salary allowances of P10,000 for A and P4,000 for B. The salaries are recognized as expenses. The partners share equally in profits and losses. The partnership reported profit for the year of P360,000. How much is the total share of A, inclusive of salary allowances? a. 300,000 b. 228,000 c. 148,000 d. 128,000
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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