Dolce and Gabbana are partners with capital balances of P 160,000 and P 80,000. They share profits in the ratio 3:1. The partners agree to admit Vuitton as a member of the firm. Vuitton is admitted to a one-fourth interest in capital by the purchase of the interest of Dolce and Gabbana for P 60,000. How much is the capital of Gabbana after the admission of Vuitton? How much is the capital of Vuitton after her admission as a new partner?
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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