ed, White, and Blue have capital balances immediately after closing entries of P80,000, P100,000, and P120,000, respectively. They have agreed to share all profits equally. Blue is selling his interest to Black for P135,000 cash. The entry on the books of the partnership to record this event includes a: a. debit to cash for P135,000 b. debit to Black, capital for P120,000 c. credit to Black, capital for P135,000 d. credit to Black, capital for P120,000
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.
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