Bernardo and Belo formed a partnership in the year 2009. The partnership agreement provides for annual salary allowances of P110,000 for Bernardo and P90,000 for Belo. The partners share profits equally and losses in a 60:40 ratio. The partnership had a profit of P180,000 for the year 2009 before any allowance to partners. What amount should be credited to Belo's capital account as a result of the distribution of the partnership profit?
Bernardo and Belo formed a partnership in the year 2009. The partnership agreement provides for annual salary allowances of P110,000 for Bernardo and P90,000 for Belo. The partners share profits equally and losses in a 60:40 ratio. The partnership had a profit of P180,000 for the year 2009 before any allowance to partners. What amount should be credited to Belo's capital account as a result of the distribution of the partnership profit?
Bernardo and Belo formed a partnership in the year 2009. The partnership agreement provides for annual salary allowances of P110,000 for Bernardo and P90,000 for Belo. The partners share profits equally and losses in a 60:40 ratio. The partnership had a profit of P180,000 for the year 2009 before any allowance to partners. What amount should be credited to Belo's capital account as a result of the distribution of the partnership profit?
Bernardo and Belo formed a partnership in the year 2009. The partnership agreement provides for annual salary allowances of P110,000 for Bernardo and P90,000 for Belo. The partners share profits equally and losses in a 60:40 ratio. The partnership had a profit of P180,000 for the year 2009 before any allowance to partners. What amount should be credited to Belo's capital account as a result of the distribution of the partnership profit?
Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.
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