Estrada – Cash of P80,000 Molina – Equipment of P50,000 The equipment was subject to a mortgage of P10,000 that was assumed by the partnership. The partners agreed to share profits and losses equally, Molina’s capital account at March 1 should 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.
- Estrada and Molina formed a partnership on March 1, 2016 and contributed the following assets:
Estrada – Cash of P80,000
Molina – Equipment of P50,000
The equipment was subject to a mortgage of P10,000 that was assumed by the partnership. The partners agreed to share
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