In 20x1, Drs. Soriano and Ramos, both medical doctors formed a partnership, with Dr. Soriano investing P100,000 and Dr. Ramos P120,000. They agreed to share net income as follows Monthly Salary allowances of P10,000 to Dr. Soriano and P8,000 to Dr. Ramos • Interest at 12% of beginning capital account balances Any partnership net income in excess of the required to cover the interest and salary allowances to be divided according to the ratio 3 for Soriano : 2 for Ramos In 20x3, the Net Income amounted to P500,000. The partnership paid a nurse P60,000 for her salary 1. Compute for the share of Dr. Ramos 2. Compute the salary expense of the partnership. 3. Compute for the share of Dr. Soriano
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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