The Income Statement of a partnership firm shows Net Income of OMR 75,000. A partner has provided OMR 40,000 loan to the partnership firm at 5% interest. Also, in the agreement it is provided that one of the partners is eligible to get salary of OMR 25,000. How much is the Net Profit of the partnership firm available for appropriation?
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.
The Income Statement of a partnership firm shows Net Income of OMR 75,000. A partner has provided OMR 40,000 loan to the partnership firm at 5% interest.
Also, in the agreement it is provided that one of the partners is eligible to get salary of OMR 25,000.
How much is the Net Profit of the partnership firm available for appropriation?
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