In a partnership ABC, engaged in the flowershop business, the liabilities of the partners are as follows: A – P20, 0000 B – P50, 000 C – P30, 000. i. Can B engage in the same business? Why or why not? ii. How shall any profit and loss be divided among the partners? iii. Suppose D is an industrial partner. What shall be his share?
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.
In a partnership ABC, engaged in the flowershop business, the liabilities of the partners are as follows:
A – P20, 0000 B – P50, 000 C – P30, 000.
i. Can B engage in the same business? Why or why not?
ii. How shall any
iii. Suppose D is an industrial partner. What shall be his share?
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