On January 1, 2020, X and Y have capital balances of P 50,000 and P 100,000. Partner X made monthly withdrawals of P 1,000 while Y made monthly withdrawals of P 1,500. Partners profit and loss agreement were as follows: 1. Annual salaries of P 60,000 for X and P 40,000 for Y 2. 10% interest on beginning capital 3. Remainder are shared equally. If the partnership capital at the end of the year is P225,000, the partnership profit (loss) for the year amounted to Place a parenthesis if net loss.
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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