Assume D and E are partners sharing residual profits in the ratio of 3:2 and close their accounts on June 30 each year. On Jan 1, 2018, Partners Fjoined the partnership, the profit sharing ratio was revised to become Partner D 50%, Partner E 25% and Partner F 25%, after providing for annual salaries as follows Partner DP 20,000 and Partner F P 12,000. The partnership profit for the year ended June 30, 2018 was P 480,000 accruing evenly over the year. What are the partner's total share in profits for the year ended june 30, 2018. Compute for each share of D, E and F.
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.
Assume D and E are partners sharing residual profits in the ratio of 3:2 and close their accounts on June 30 each year. On Jan 1, 2018, Partners Fjoined the
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