P 430,000
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.
40.
Ubebe Rite Gandang Reyna presently earns annual salary of P 400,000 as an electrician. She accepts an
invitation to join an electrical contracting partnership that promises an annual profit of P 480,000 to Ubebe
Rita before the deduction of her P 50,000 annual share of
Rita’s decision to join the partnership would be
a. P 50,000
b. P 80,000
c. P 400,000
d. P 430,000
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