Partners John and Dickens have capital balances in a partnership of $155000 and $233000, 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 John Dickens $39100 $48900 10% 10% 50% O $38800 O $107800 O $77600 O $90200 50% If income for the year was $198000, what will be the allocation of income to Dickens?
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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