The partnership agreement between Partners Paul, John, George and Ringo were as follows: a. All partners receive a 10% interest on their beginning capital balances as follows: Paul – 1,200,000, John – 1,050,000, George – 1,550,000, and Ringo – 1,800,000, b. Partners Paul and Ringo both receives annual salary of P480,000 and P300,000 respectively c. Any remaining profits or loss are to be divided according to their capital ratio, d. Net profit for the year amounted to 450,000
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
a. All partners receive a 10% interest on their beginning capital balances as follows: Paul – 1,200,000, John – 1,050,000, George – 1,550,000, and Ringo – 1,800,000,
b. Partners Paul and Ringo both receives annual salary of P480,000 and P300,000 respectively
c. Any remaining
d. Net profit for the year amounted to 450,000
- How much is the share in the partnership income did Ringo received?
- How much is the share in the partnership income did John received?
- How much is the share in the partnership income did George received?
- How much is the share in the partnership income did Paul received?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
