atie, Berry and Betty agree to share profits and losses: Tom and Betty have $60 and $30 salary allowances Berry has a bonus of 50% of profits in excess of $500 Each have interest allowances of 10% of beginning capital Tom Capital, 1/1 $400 Betty Capital, 1/1 $350 Berry capital, 1/1 400 Remaining profits or losses are shared Tom 30%, Betty 40% and Berry 30%. Partnership profits are $800 for the year.
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.
Katie, Berry and Betty agree to share
- Tom and Betty have $60 and $30 salary allowances
- Berry has a bonus of 50% of profits in excess of $500
- Each have interest allowances of 10% of beginning capital
- Tom Capital, 1/1 $400
- Betty Capital, 1/1 $350
- Berry capital, 1/1 400
- Remaining profits or losses are shared Tom 30%, Betty 40% and Berry 30%.
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