Ahmed, Arif, and Amin are partners in a firm, the net profit for the year was RO 56000. The partners agreed to share the profit in the ratio of 3 : 2 : 2 respectively. The share of profit for each partner will be: a. Ahmed: RO 34000, Arif: RO 26000, Amin: RO 26000 b. Ahmed: RO 16000, Arif: RO 8000, Amin: RO 24000 c. Ahmed: RO 24000, Arif: RO 16000, Amin: RO 16000 d. Ahmed: RO 12000, Arif: RO 8000, Amin: RO 8000
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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