erate as a partnership. Their agreement includes the following: ● Rian will receive a salary of P20,000 and a bonus of 3% of income after all the bonuses ● Lance will receive a salary of P10,000 and a bonus of 2% of income after all the bonuses ● All the partners are to receive the following: Rian - P5,000; Lance P4,500; Weng - P2,000; and Sidd - P4,700, representing 10% interest on their average capital balances. ● Any remaining profits are to be divided equally among the partners Partnership reports a profit of P40,000 ● w much is Lance's share in the profit if profit is distributed in the following er of priority: Interest on invested capital, then bonuses, then salary, and a according to profit and loss percentage?
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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