Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $62,000 cash rom Busby and $138,000 from Beatty. During Year 1, the partnership earned $64,400 in cash revenues and paid $33,3 or cash expenses. Busby withdrew $2,500 cash from the business, and Beatty withdrew $5,400 cash. The net income vas allocated to the capital accounts of the two partners in proportion to the amounts of their original investments in th business. Required Prepare an income statement atomo boot
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.
Subject: accounting
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