32. Partners X, Y and Z had average capital account balances during the year of P400,000, P500,000 and P100,000, respectively. The partnership agreement provides for the following division of profits and losses. Interest: 6% on average capital balances of each partner Salaries: X, P100,000; Y, P150,000; and Z none Remainder: X 20%; Y 30%; Z 50%. If the aggregate share of X in the profit is P112,000, how much should have been the partnership profit?
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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