After a year of operations, the partnership of Deborah, Emilda and Fe generated income amounting to P 150,000. The capital balance of Deborah is P 50,000 while Emilda and Fe each have a capital balance of P 75,000. The partners share profits based on capital ratio. How much is the share of Deborah in the income of the partnership? A. P 75,000 B. P 56,250 C. P 37,500 D. P 60,000
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.
Step by step
Solved in 2 steps with 1 images
