A, B and C are partners contributed the following: A- P6,000.00; B -P4,000; and C-industry. They agreed that the profits and losses shall be distributed as follows to wit: A-35%; B-25%, and C-40%. How shall the loss of the P10,000 be distributed? a. A- P6,000; B-P4,000; C-none b. A- P3,500; B - P2,500; C- P4,000 c. A- P3,333; B- P3,333; C- P3,333 d. A- P5,000; B-P2,500; C-none
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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