Jennifer and David are in partnership sharing profits and losses 3:5 respectively. The other partnership agreements are a follows: • Interest is to be allowed on capital at 8 % per annum. • Interest on drawings is at the rate of 5% per annum • David is to receive an annual salary of $%$54 000 • Interest on loans allowed by partners is at the rate of 6% per annum. The capital of the partners at 1 January 2021 is as follows: Jennifer $600 000 David $ 200 000 During the year Jennifer took $140 000 cash on July 1 and David took $80 000 on December 31. David gave the
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.
Kh.141.
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