Show the solution in good accounting form Edmund, Harry and Vincent formcd a partnership on January 1, 2018. Each contributed P120,000. Salaries were to be allocated as follows: Edmund- P30,000 Harry- P30,000 Vincent- P45,000 Drawings were equal to salaries and be taken out evenly throughout the year. With sufficient partnership net income, Edmund and Harry could split a bonus equal to 25% of partnership net income after salaries and bonus (in no event could the bonus go below zero). Remaining profits were to be divided as follows: 30% for Edmund; 30% for Harry, and 40% for Vincent. For the year, partnership net income was P120,000. Required: Compute the ending capital for each partner?
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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