Cion and Erro agreed to form a partnership with agreed capitalization of 300,000 with Erro contributing 1/3 of the total agreed capitalization. How much should Cion contribute? A. 200,000 B. 150,000 C. 100,000 D. 50,000
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.
Cion and Erro agreed to form a
contributing 1/3 of the total agreed capitalization. How much should Cion contribute?
A. 200,000
B. 150,000
C. 100,000
D. 50,000
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