Q, R and S carry on business sharing the profits in the ratio of 2:3:4 respectively. Capitals as on 1st Jan 2020 are Q is OMR 20,000, R is OMR 30,000 and S is OMR 40,000. Calculate Total Profit to be divided among partners when average profits of the preceding 3 years were Profit 2017 OMR 50,000 Loss 2018 OMR 40,000 and 2019 Pro OMR 30,000?
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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