Partners Charles and Dickens have capital balances in a partnership of $162000 and $240000, respectively. They agree to share profits and losses as follows: As salaries As interest on capital at the beginning of the year Remaining profits or losses Charles Dickens $40200 $49000 O $49200 O $64700 O $56400 O $40200 10% 50% 10% 50% If income for the year was $115000, what will be the allocation of income to Charles?
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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