On January 1 Steve Froese, Mark Popse and Nick Antler agreed to form a partnership called FPA Consulting. On December 31 the partnership reported a loss for the year of $15,000. The partnership agreement is to provide for the following sharing of profit and losses: Antler Froese $ 30,000 Popse $ 50,000 $ 35,000 Salary allowance.. Fixed ratios.. Required: 1. Prepare a schedule to show the division of loss at December 31 2. Prepare the journal entry to record the allocation of the partnership loss on December 31.
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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