P and Q are sharing profit and losses equally .With effects from current year they decided to share profits in the ratio of 4:3.Calculate individual partner’s gain and Sacrifice P gains 1/12th share and Q sacrifices 1/14th share P gains 1/14th share and Q sacrifices 1/14th share P gains 1/10th share and Q sacrifices 1/14th share P gains 1/15th share and Q sacrifices 1/14th share

Q: Kumar, Lakshya, Manoj and Naresh are partners sharing profits in the ratio of3 : 2 : 1 : 4. Kumar…

A: Old Ratio = 3:2:1:4 Lakshya = 2/10 Manoj = 1/10 Naresh = 4/10 Since, Lakshya and Manoj divides and…

Q: A and B enter to a joint venture sharing profit and losses in the ratio 2:1. A purchase goods…

A: Commission On purchase = 200000 * 1% = 2000 Commission on sales = 250000 * 5% = 12500 Total…

Q: 4. Assuming that the P450,000 is a loss and not a profit, compute for the shares in the loss of the…

A: Given: Profit Sharing Ratio is 3:2 Loss P450,000

Q: FIZZ and GAREN partners who share profits and losses in the ratio of 3:2 respectively.   Salary:…

A: Very simple answer

Q: Mr. Azeem, Mr. Hashim and Mr. Shakeel are partners sharing profits in the ratio of 4:3:2. Mr. Azeem…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: The firm also has two alternatives to find out the new ratio and sacrificing ratio of the partners…

A: Condition a: Old ratio = 5:3 New partner C acquires   New ratio of A:B:C is 7:5:4

Q: 10. A, B, and C are partners and share profits and losses as follows: Salaries of P40,000 to A;…

A: For calculating the amount of share of A in the total net income, we need to prepare a Net Income…

Q: Roy and Robert formed RR Partnership. Profit and loss agreement states that Roy shall receive 10%…

A: Partnership firm is the business association whereby the partners run the business together for…

Q: A. B and C are partners in a firm sharing profits and losses as 7:5:3 respectively. B retires and…

A: Step 1: B's Share DistributionB's share: 5/15A takes 3/5 of B's share = (3/5) x (5/15) = 3/15C takes…

Q: profit or loss

A: .To compensate the partners for the difference in capital contributions, they may include which of…

Q: Mr. Ahammed, Mr. Badsha and Mr. Lathif are partners. They share profit and loss in the ratio of…

A: Profit sharing ratio refers to the ratio in which profit or losses are shared by the partners. In…

Q: Bing is trying to decide whether to accept a salary of P120,000 or a salary of P75,000 plus a bonus…

A: Partnership means where two or more person comes together to do some common business activity and…

Q: Mr. D, Mr. N and Mr. S were partners in a firm sharing profits in the ratio of 5: 3: 2. Mr. N…

A: Partnership means where two or more person comes together to do some common business activity and…

Q: = new profit sharing ratio

A: When a new partner is admitted the old partners need to sacrifice some amount their profit share to…

Q: Abdullah, Mazin and Amir are partners sharing profits in the ratio of 9: 6: 3. Mazin retires and…

A: Goodwill means reputation of business which business earns over the period of time. In case of…

Q: Mr. J, Mr. K, Mr. E and Mr. S are partners in a firm sharing profits and losses in the ratio of 2:…

A: Gaining ratio = New ratio - Old Ratio

Q: New Profit sharing ratio and sacrificing ratio

A: Current profit sharing ratio = 3:2 Share of P = 3/5 Share of Q = 2/5 R's share of future profits =…

Q: X wants to retire from the firm. The profit on revaluation of assets on the date of retirement is…

A: In case of partnership the profits are shared among the partners in their respective profit sharing…

Q: The firm also has two alternatives to find out the new ratio and sacrificing ratio of the partners…

A: Introduction  Partnership may be defined as that type of business firm in which two or more persons…

Q: Mr. Azeem, Mr. Hashim and Mr. Shakeel are partners sharing profits in the ratio of 4:3:2. Mr. Azeem…

A: When a partner retires from partnership the profit share of the partner is divided among partners in…

Q: All partners sacrifice) : A and B partners sharing profits and losses in the ratio of 3:2. They…

A: Solution Calculation of sacrificing ratio- Sacrificing ratio = Old ratio - new ratio. A= 3/5 - 3/8…

Q: is P4. 5. We agreed that I should receive a P1 bonus in addition to my P1 salary while you receive a…

A: in partnerships two or more  person come together to start a business in order to share their skill…

Q: Marc, Jacobs and Benetton share profits in the ratio 2:3:5.  On September 30, Partner Benetton opted…

A: In the given question, Benetton has opted to Retire. His capital balance on retirement was P 70,000.…

Q: Statement I: Partners with the greatest ability to absorb losses and expenses are the first to…

A: A partnership is a kind of business structure in which two or more people agree to carry out…

Q: 5. The percentage of ownership interest of the partners is always the same as their profit- sharing…

A: In a partnership firm , partners share profit . Also they are paid interest on the capital .

Q: Calculate the Gaining Ratio.

A: Since you have asked multiple questions, we will solve the first question for you. If youwant any…

Q: ny had a profit of 450,00. 1. Assuming that there are three partners that agreed to share equally ,…

A: Solution: Profits are shares based on the profit sharing ratio. When profits are agreed to be shared…

Q: A and B were partners in a firm sharing profis and losses in the ratio of 3:2. They admit C into the…

A: Initially, A and B were sharing profits and losses in the ratio of 3:2. This means that out of every…

Q: Find the profit sharing ratio of A, B. C, and D

A: A partnership is a written contract between two or more people in which they agreed to do business…

Q: What amount of income would be necessary so that RRR would consider the choices to be equal?

A: Given two options are: Bonus of 25% of net income after salaries or bonus Salary of 97500 plus a…

Q: Gobind, Hari and Pratap are partners. On retirement of Gobind, the goodwillalready appears in the…

A: Partnership:   It is a form of business where two or more people come together to form a business…

Q: 3. Nicki, Tryon, and Zendaya are allies who share profits in a 2:2:1 ratio. Then Agnez was accepted…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Wong and White are partners. They have agreed to share profits based on a formula where the first…

A: Following is the  profit distribution.

Q: Mohammed Ahmed and Amir are partners sharing profits in the ratio of 9: 6: 3. Ahmed retires and…

A: Mohammed and Amir profits sharing ratio = 9 : 3

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.