For the year 2021, the partnership of AMMAR and BANU realized a net profit of P240,000. The capital accounts of the partners show the following postings: Jan. 1 May 1 July 1 Aug. 1 Oct. 1 AMMAR Debit Credit Debit Credit 20,000 10,000 120,000 BANU 10,000 10,000 5,000 80,000 20,000 Question 5 If the profits are to be divided based on average capital, how much will be the share of AMMAR?
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.
![For the year 2021, the partnership of
AMMAR and BANU realized a net profit of
P240,000. The capital accounts of the
partners show the following postings:
Jan.
1
May
1
July
1
Aug.
1
Oct.
1
AMMAR
Debit Credit Debit Credit
20,000
10,000
120,000
BANU
10,000
10,000
5,000
80,000
20,000
Question 5 If the profits are to be divided
based on average capital, how much will be
the share of AMMAR?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F826ebfa9-0f7a-4fba-972f-d65062f66149%2Ff49acf02-b6db-461e-ac9e-e6ede1c8d76a%2Fxdhu0a1_processed.jpeg&w=3840&q=75)
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