In 2021, Fannie and Beola formed an equal General Partnership. They each invested $50,000 Cash and the Partnership obtained a bank loan for $260,000 which is still presently outstanding. The Partnership had no Income for two (2) years and incurred Deductible Expenses of $80,000 and $120,000 for the years of 2021 and 2022, respectively. In 2023, the Partnership earned $140,000 of Income. Each Partner's basis in their Partnership Interest at the end of the year of 2023 is: O$ 50,000. O $150,000. $240,000. O $180,000.
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.
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