Requirement: Compute for the respective shares of the partners in the profit.
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.
. Problem 1
A and B formed a
A, Capital P 100,000
B, Capital 200,000
__________
P 300,000
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The partnership earned profit of P1,200,000. There was no stipulation in the partnership agreement on how profits are to be shared by the partners.
Requirement: Compute for the respective shares of the partners in the profit.
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