A, B, and C of ABC Partnership have beginning capital balances of P500,000, P300,000, and P200,000 respectively. The partnership has the following information: Sales (60% credit; 40% cash) amounting to P1,200,000, Cost of Goods Sold, P920,000, and Total operating expenses is P218,000. In their profit-sharing arrangement: . Salaries of P15,000, P20,000, and P25,000 shall be given to each partner respectively . Interest at 3% of the beginning capital balances would be allowed in profit distribution. Any remaining amount will be divided among each partner at 3:1:1. ● not profit (lore) Encode as a negative amount if the answer is negative.
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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