absence of a Partnership Agreement, which of the following principles apply? A. Interest on drawings is 5%. B. Profits and losses are shared equally C. Interest on capital is 5% D. Profits and losses are shared in proportion to their capital.
absence of a Partnership Agreement, which of the following principles apply? A. Interest on drawings is 5%. B. Profits and losses are shared equally C. Interest on capital is 5% D. Profits and losses are shared in proportion to their capital.
absence of a Partnership Agreement, which of the following principles apply? A. Interest on drawings is 5%. B. Profits and losses are shared equally C. Interest on capital is 5% D. Profits and losses are shared in proportion to their capital.
In the absence of a Partnership Agreement, which of the following principles apply?
A. Interest on drawings is 5%. B. Profits and losses are shared equally C. Interest on capital is 5% D. Profits and losses are shared in proportion to their capital.
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
