On July 01, 2021, A, B, and C formed a business partnership to be operated as an advertising agency. A contributed P100,000 cash while B shall have capital credit of P60,000 upon receipt of bonus of P10,000 from A based on the provision in Articles of Co-Partnership. The terms of the agreement provide that A and B shall have a combined 40% capital interest in the newly formed partnership. What is the capital contribution made by C to the partnership?
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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