A. Aishah and Aileen were partners in Double-A Wellness Spa Centre. The business closes its accounts to 31 December annually. Up to 30 June 2017, Aishah and Aileen shared their profits in the ratio of 50:50. From 1 July 2017 their profit sharing ratio was changed to 25:75. Aileen left the partnership to set up her own spa centre on 1 October 2017. Also on 1 October 2017 Aida was admitted to the partnership and the agreed profit sharing ratio between her and Aishah from that date was 50:50. The relevant details of the partnership for the year of assessment 2017 are: RM Divisible income 200,000 Partner's salaries (all partners were each paid a salary for each month they worked in the nartnershin) 2,000/month
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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