Perez and Daganta are partners who share profits and losses on a ratio of 2:1 and have capital balances of P750 000 and P1 500 000 respectively. The partners agreed to admit Barros to the partnership. Barros invested P750 000 for a 35% interest in the partnership. The new total capital balance after admitting Barros is P3 000 000. Daganta’s capital balance after Barros is admitted is .
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.
Perez and Daganta are partners who share
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