How much is the share of Gi in the partnership’s income of P450,000?
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.
2. The capital balances of partners Po and Gi are as follows:
Po Gi
January 1, Beginning P100,000 P200,000
June 30, investment 50,000 -
September 30, withdrawal - (100,000)
Balance P150,000 P100,000
Their agreement is to share
is the share of Gi in the
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