Jack, King, Lloyd and Martin formed a partnership, Jack being an industrial partner while King, Lloyd and Martin being capitalist partners who contributed cash amounting to P 30,000, P 50,000 and P 40,000, respectively. The partners share profits based on capital ratio. If the partnership generated income of P 80,000 for the year, how much should Jack, the industrial partner, receive as his share in the profits? Group of answer choices P 16,000 P 20,000 P 33,333 P 26,667
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.
Jack, King, Lloyd and Martin formed a
Group of answer choices
P 16,000
P 20,000
P 33,333
P 26,667
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