Given the following information about AB partnership A B Capital 200,000 150,000 Salary 100,000 60,000 Net income 300,000 Required: Allocate net income between A and B assuming that any remaining income will be allocated equally.
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.
Given the following information about AB
A B
Capital 200,000 150,000
Salary 100,000 60,000
Net income 300,000
Required:
Allocate net income between A and B assuming that any remaining income will be allocated equally.
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