Bimbim and Queen are partners who share profits and losses in a ratio of 3:2, respectively, and have the following capital balances on Dec. 31, 2020: Bimbim Capital, P2,000,000 Cr. And Queen Capital, P1,500,000 Cr. Assume that the partners agreed to let Gian into the partnership by investing P1,000,000 for a 1/4 interest. Gian’s capital balance will be _______
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.
Bimbim and Queen are partners who share
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