Alex (A), Bebeto (B), and Carol (C) decide to start a lawn mowing business together and form a partnership. A invests $105,000, B invests $175,000, and C invests $280,000. They agree to share the profits in the same ratio as their investments. a. What is the ratio of their investments? Express in lowest terms h. If A's profit was $29.000 in the first vear calculate B's profits and C's profits
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 4 steps
