Basil and Ben are in partnership sharing profits and losses in the ratio 3 : 2. Basil receives an annual salary of $12 000. The firm’s net profit for the year was $52 000. How much would be credited to the current account of each partner after all appropriations? Basil current account Ben current account $ $ A 26 000 26 000 B 31 200 20 800 C 36 000 16 000 D 24 000 16 000
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.
- Basil and Ben are in partnership sharing
profits and losses in the ratio 3 : 2. Basil receives an annual salary of $12 000. The firm’s net profit for the year was $52 000. How much would be credited to the current account of each partner after all appropriations?
Basil current account Ben current account
$ $
A 26 000 26 000
B 31 200 20 800
C 36 000 16 000
D 24 000 16 000
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