The AA.BB. and CC Partnership was formed on January 2, 20x9. The original cash investments were as follows: AA, P 48.000; BB, 72,000; CC, 108,000. According to the general partnership contract, the partners were to be remunerated as follows: A. Salaries of P7,200 for AA, P6,000 for BB and P6,800 for CC. B. Interest at 12% on the overage capital account balances during the year. C. Remainder divided 40% to AA, 30% to BB, and 30% for CC. Income before partners' salaries for the year ended December 31, 20x9, was P46,040. AA invested an additional P12,000, in the partnership on July 1. CC withdrew P18,000 from the partnership on October 1, and, as authorized by the partnership contract, AA, BB, and CC each withdrew P375 monthly against their shares of ret income for the year. Determine the capital balance of CC on December 31,20x9:
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 AA.BB. and CC
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