Item Nő. 22 I5 formation: Kung and Fu are partners whose average capitals during 200B wer P 500,000 and P 300,000, respectively. Their profit and loss sharing agreemer had the following provisions: o Salaries: Kung, P 12,000 per month; Fu, P 15,000 per month; o 10% interest on the average capital; 12% bonus to Fu based on the profit after treating all allowances
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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