In the first year of operations, the partnership of Sun, Nyu, and Beom made a profit of 20,000, before providing for salaries of 5,000 and 3,000 per annum for Sun and Nyu, respectively. The capital contributions of the partners are as follows: Sun, 30,000; Nyu, 20,000; and Beom, 10,000. Assuming that no profit and loss ratio is provided in the partnership agreement and that there has been no change in the capital contributions during the year, how much profit share would Sun receive?
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 the first year of operations, the
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