Barnes and Carter join in a venture for the sale of football souvenirs at the Rose Bowl Games Partners agree to the following: (1) Barnes must be allowed a commission of 10% on net purchases, (2) members shall be allowed commissions of 25% on the respective sales, (3) any remaining profit shall be shared equally, Venture transactions follows: December 20 Barnes make cash purchases, P9,500. January 1 Carter pays venture expenses, P1,500 January 1 Sales are as follows: Barnes, P8,000; Carter, P6,000 (members kept their own cash receipts.) January 6 Barnes returns unsold merchandise and receives cash of P2,500 on the return. January 6 The partners make cash settlement. Required: Separate books for the venture are not kept. What entries would be made on the books of Barnes and Carter?
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.
Barnes and Carter join in a venture for the sale of football souvenirs at the Rose Bowl Games Partners agree to the following: (1) Barnes must be allowed a commission of 10% on net purchases, (2) members shall be allowed commissions of 25% on the respective sales, (3) any remaining profit shall be shared equally, Venture transactions follows:
December 20 Barnes make cash purchases, P9,500.
January 1 Carter pays venture expenses, P1,500
January 1 Sales are as follows: Barnes, P8,000; Carter, P6,000 (members kept their own cash receipts.)
January 6 Barnes returns unsold merchandise and receives cash of P2,500 on the return.
January 6 The partners make cash settlement.
Required: Separate books for the venture are not kept. What entries would be made on the books of Barnes and Carter?
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