3. Partnershin-Distribution of Profit & Loss: Quiser and Abbas formed a partnership on January 1, 2020 with capitals of Rs. 150,000 and Rs. 180,000 respectively, and agreed to share profivloss as follows: i) i) Each partner will receive interest on beginning capital a 10% Qaiser will be paid salary of Rs.60,000 annually. A commission of Rs. 4,000 wil be paid to Abbas. iv) The remaining, ifany, shall be divided equally. Reguired: Prepare an Income distribution summary assuming that the firm earned Net Income of Rs. 120,000 and closes its book on December 31, each year.
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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