partners who share profits and losses in the respectively. On January 1, 2021, their respective capital accounts were as foln AA, P35,000; BB, P30,000. on that date, they agreed to admit CC as a partner with a one-third interest i capital and profits and losses, and upon his investment of P25,000. The partnership will begin with a total capital of P90,000. howo Required: 1. How much is the capital balance of each partner after admission of CC? 2. Assuming that the agreed capital was P100,000, how much is the capital ba of each partner after admission of CC? elcod ar 0S0S
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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