The profit allocation by A is:
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.
A，B, C run a partnership.
A does not work in the business. As a result, B receives an annual salary of 78000, C receives 39000.
Alsom the partnership agrees to pay an interest of 10% of their capital balance. For any remaining profit after salary and interest, they will share based on their agreed fixed ratios.
A: Capital of 45000,
B: Capital of 50000, Profit and loss sharing:25%
C: Capital of 50000, Profit and loss sharing :55%
The profit for the year ended is 130000
The profit allocation by A is:
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