Statement 1 ln the absence of any agreement, the profit or loss must be divided among the partners equally Statement 2 Permanent withdrawals are made by the partners in anticipation of future share in the proftt O Only Statement 1 is correct O Only Statement ll is correct
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.
Statement 1 ln the absence of any agreement, the profit or loss must be divided among the partners equally
Statement 2 Permanent withdrawals are made by the partners in anticipation of future share in the proftt
O Only Statement 1 is correct
O Only Statement ll is correct
Both statements are corect
oBoth statements are incorrect
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