ally after Rubio and Bisana established a trading partnership. allowing salaries of P40,000 per year for Rubio and interest on partner's capital at 5% per year. On Jan. 1, 2016, their capital balances are as follows: Rubio, P200,000 and Bisana, P100,000. On July 1, 2016, Bisana invested an additional P100,000 and Rubio's salary was discontinued. The partnership profit for the year ended Dec. 31, 2016 was P337,500. What was Rubio's total profit share for the year ended Dec. 31, 2016? a. P182,500 b. P178,750 P180,000 P190,000 с. d.
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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