PARTNERSHIP INCOME DISTRIBUTION: For partnership H, if Partner D’s total share of the partnership’s net income 300,000 and Partner D’s salary allowance is 120,000 Partner D’s share of the remainder of the partnership’s net income is 150,000, how much is Partner D’s interest on original capital balance? a. 50,000 b. 40,000 c. 30,000 d. 20, 000 e. None of the above
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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a. 50,000 |
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b. 40,000 |
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c. 30,000 |
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d. 20, 000 |
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e. None of the above |
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