The following is the statement of financial position of MEC Partnership as of June 30,2020: MEC Partnership Statement of Financial Position June 30, 2020 ASSETS LIABILITIES and PARTNERS' EQUITY Liabilities P 175,000 495,000 P 108,000 Cash P 250,000 200,000 Other Assets Margaret, Capital Elizabeth, Capital Cecilia, Capital Total Equities 112,000 562,000 P 670,000 Total Assets P 670,000 The partners agreed to distribute the profits as follows: (a) interest on ending capital of 10%; (b) Annual salaries to Elizabeth and Cecilia of P120,000 each; and (c) Remainder: 4:3:3. Compute the share of each of the partners in the net loss amounting to P250,000 for the fiscal year ending June 30, 2020.
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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