3. Amount paid by Jam to Jim
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.
The joint operation accounts in the books of the operators, Jam, Jem, and Jim, show the balances below, upon the termination of the joint operation and distribution of the profits: Accounts Jam Dr (Cr) Jem Dr (Cr) Jim Dr (Cr) Jam P5,000 P5,000 Jem P8,000 8,000 Jim (13,000) (13,000) REQUIRED The final settlement of the joint operation will require payment as follows: 3. Amount paid by Jam to Jim 4. Amount paid by Jem to Jim Shaun Company reports a net income of P280,000 each year and pays an annual cash dividend of P100,000. The company holds net assets of P2,400,000 on January 1, 20x1. On that date, Jared Company purchases 40% of the outstanding stock for P1,200,000, which gives it the ability to have joint control with Glassman Company over Shaun. At the purchase date, the excess of Jared's cost over its proportionate share of Shaun's book value was assigned to
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