The partnership agreement of ABC partnership includes the following profit and loss sharing provisions: Salaries to partners B and C amounting to P5,000 per month 5% bonus to partner B based on profits after salaries and bonus Remainder to be allocated 2:2:1 At the end of current period, the partnership generated a net income of P100,000. Based on the information provided, how should the profit be distributed
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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