Márasigan, Cabance and Cequina formed a partnership on Jan. 1, 2019. contributed P120,000. Each Salaries were to be allocated as follows: Marasigan, P30,000; Cabance, P30,000; Cequina, P45,000. Drawings were equal to salaries and to be taken out evenly throughout the year. With sufficient partnership profit, Marasigan and Cabance could split a bonus equal to 25% of partnership profit after salaries and bonus (in no event could the bonus go below zero). Remaining profits were to be split as follows: 30% for Marasigan; 30% for Cabance, and 40% for Cequina. For the year, partnership profit was P120,000. Compute the ending capital for each partner: Marasigan, P125,100; Cabance, P125,100, Cequina, P124,800 Marasigan, P126,000; Cabance, P126,000, Cequina, P124,500 Marasigan, P125,500;, Cabance, P125,500, Cequina, P124,000 Marasigan, P155,100; Cabance, P155,100; Cequina, P169,800 a. b. C. d.
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.
Márasigan, Cabance and Cequina formed a partnership on Jan. 1, 2019. contributed P120,000. Each Salaries were to be allocated as follows: Marasigan, P30,000; Cabance, P30,000; Cequina, P45,000. Drawings were equal to salaries and to be taken out evenly throughout the year. With sufficient partnership profit, Marasigan and Cabance could split a bonus equal to 25% of partnership profit after salaries and bonus (in no event could the bonus go below zero). Remaining profits were to be split as follows: 30% for Marasigan; 30% for Cabance, and 40% for Cequina. For the year, partnership profit was P120,000. Compute the ending capital for each partner: Marasigan, P125,100; Cabance, P125,100, Cequina, P124,800 Marasigan, P126,000; Cabance, P126,000, Cequina, P124,500 Marasigan, P125,500;, Cabance, P125,500, Cequina, P124,000 Marasigan, P155,100; Cabance, P155,100; Cequina, P169,800 a. b. C. d.
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