Partners angela and gabriel receive a salary allowance of 30,000 and 70,000, respectively, and agreed to share the remainder of profit equally. If the company earned 40,000 during the period how will the profit be distributed. Angela's? Gabriel's?
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.
Partners angela and gabriel receive a salary allowance of 30,000 and 70,000, respectively, and agreed to share the remainder of profit equally. If the company earned 40,000 during the period how will the profit be distributed.
Angela's?
Gabriel's?
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