od and Joseph are partners with capital balances of P1,600,000 and P2,400,000 respectively. They share profits and losses in a ratio of 2:3 1. Jacob and Joseph agreed to accept Joshua into the partnership by investing P1,000,000 cash for a one-fifth interest in the partnership. Joshua, Jacob & Joseph's capital balance will be:
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.
Jacod and Joseph are partners with capital balances of P1,600,000 and P2,400,000 respectively. They share
1. Jacob and Joseph agreed to accept Joshua into the
Step by step
Solved in 2 steps
