and Order Partnership. The partners share profits and losses in a 3:1 ratio. During the year, Law withdraws $70,000 and Order withdraws $30,000. If the partnership earns $80,000 during the year, what are the balances of Law's and Order's capital accounts? O $65,000 Law $35,000 Order O $140,000 Law $60,000 Order O $70,000 Law $30,000 Order O $60,000 Law $20,000 Order
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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