A and B are partners in AB Partnership sharing profits and losses 25% and 75%, respectively. On January 1, 2020, the partners revised their profits and loss sharing ratio into 40% to A and 60% to B. On the date of change, the partnership’s land with a carrying value of P500,000 was appraised to have a fair value of P1,000,000. On August 1, 2020, the land was sold for P1,500,000. The total increase in the capital of B as a result of the above was:
A and B are partners in AB Partnership sharing profits and losses 25% and 75%, respectively. On January 1, 2020, the partners revised their profits and loss sharing ratio into 40% to A and 60% to B. On the date of change, the partnership’s land with a carrying value of P500,000 was appraised to have a fair value of P1,000,000. On August 1, 2020, the land was sold for P1,500,000. The total increase in the capital of B as a result of the above was:
A and B are partners in AB Partnership sharing profits and losses 25% and 75%, respectively. On January 1, 2020, the partners revised their profits and loss sharing ratio into 40% to A and 60% to B. On the date of change, the partnership’s land with a carrying value of P500,000 was appraised to have a fair value of P1,000,000. On August 1, 2020, the land was sold for P1,500,000. The total increase in the capital of B as a result of the above was:
A and B are partners in AB Partnership sharing profits and losses 25% and 75%, respectively. On January 1, 2020, the partners revised their profits and loss sharing ratio into 40% to A and 60% to B. On the date of change, the partnership’s land with a carrying value of P500,000 was appraised to have a fair value of P1,000,000. On August 1, 2020, the land was sold for P1,500,000. The total increase in the capital of B as a result of the above was:
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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