Bulan, Bustos, and Bucao formed a partnership on January 1, 2009 and contributed P150,000, P200,000, and P250,000, respectively. The Articles of Co-Partnership provide that the operating income be shared among the partners as follows: As salary: Bulan – P24,000; Bustos – P18,000; Bucao – P12,000; interest of 12% on the average capital during 2009 of the three partners; the remainder will be divided in the ratio of 2:4:4, respectively. Additional information: a. Operating income for the year ended December 31, 2009 is P180,000. b. Bulan contributed additional capital of P30,000 on July 1, and made drawing of P10,000 on October 1. c. Bustos contributed capital of P20,000 on August 1 and made withdrawal of P10,000 on October 1. d. Bucao made withdrawal of P30,000 on November 1. The division of the P180,000 operating income for Bucao 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.
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