GI-HUN, SANG-WOO and SAE-BYEOK are partners of Push-it Partnership. Their capital balances are GI-HUN - P400, SANG-WOO - P280 and SAE-BYEOK - P120. The following are their agreement in their profit sharing: 25% bonus to GI-HUN based on profit after deducting the said bonus. SANG-WOO and SAE-BYEOK will be given 10% interest each on their capital balances. The remaining profits will be shared in the ratio of 5:2:1 for GI-HUN, SANG-WOO and SAE-BYEOK respectively. 5. How much is the profit share of GI-HUN if the profit is P90? 6. How much will be the income (loss) if the share of GI-HUN is P255? 7. How much will be the income (loss) if the share of SANG-WOO is P21? 8. How much will be the income (loss) if the share of SAE-BYEOK is P3?
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.
GI-HUN, SANG-WOO and SAE-BYEOK are partners of Push-it Partnership. Their capital balances are GI-HUN - P400, SANG-WOO - P280 and SAE-BYEOK - P120.
The following are their agreement in their profit sharing:
25% bonus to GI-HUN based on profit after deducting the said bonus.
SANG-WOO and SAE-BYEOK will be given 10% interest each on their capital balances.
The remaining profits will be shared in the ratio of 5:2:1 for GI-HUN, SANG-WOO and SAE-BYEOK respectively.
5. How much is the profit share of GI-HUN if the profit is P90?
6. How much will be the income (loss) if the share of GI-HUN is P255?
7. How much will be the income (loss) if the share of SANG-WOO is P21?
8. How much will be the income (loss) if the share of SAE-BYEOK is P3?
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