A and B are partners in a partnership known as X & Co. They agreed that they would contribute all their properties to a common fund for the purpose of dividing the same between themselves, as well as the profits to be derived therefrom. A contributed all his properties consisting of two (2) big parcels ofg aricultural land and a tractor. B contributed also his properties consisting of P100,000 cash and farmm iplements. What type of partnership did A and B enter into? QUESTIONS:1. A and B are partners in a partnership known as X & Co. They agreed that they would contribute all theirproperties to a common fund for the purpose of dividing the same between themselves, as well as theprofits to be derived therefrom. A contributed all his properties consisting of two (2) big parcels ofagricultural land and a tractor. B contributed also his properties consisting of P100,000 cash and farmimplements. What type of partnership did A and B enter into?

The partnership is a form of business organization under which two or more than two person joins…

Answered: A and B are partners in a partnership…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A and B are partners in a partnership known as X & Co. They agreed that they would contribute all their properties to a common fund for the purpose of dividing the same between themselves, as well as the profits to be derived therefrom. A contributed all his properties consisting of two (2) big parcels ofg aricultural land and a tractor. B contributed also his properties consisting of P100,000 cash and farmm iplements. What type of partnership did A and B enter into?

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.

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