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Business Accounting Connect Access Card for Financial Accounting: Information and Decisions

Partnership : It is an organization in which two or more person join together to do a business in which they all share profit and losses in an agreed ratio. One or more partners are acting in behalf of all partners. Each partner is responsible for the act of firm. Requirement-1: To Calculate: Share of partner. Partner 1 Partner 2 Share 53400 45400 Calculation of Partners Share Partner 1 Partner 2 Opening Capital (A) 60000 80000 Interest (A*10%)= B 6000 8000 Salary (C) 50000 40000 Loss distributed (1:1) (D) 2600 2600 Share (B+C-D) 53400 45400 Original Profit 98800 Less: Total of salary and interest (A+B) 104000 Net Loss -5200 Concept Introduction: Partnership: It is an organization in which two or more person join together to do a business in which they all share profit and losses in an agreed ratio. One or more partners are acting in behalf of all partners. Each partner is responsible for the act of firm. Requirement-2: To Calculate: Share of partner. Partner 1 Partner 2 Share -4400 -12400 Calculation of Partners Share Partner 1 Partner 2 Opening Capital (A) 60000 80000 Interest (A*10%)= B 6000 8000 Salary (C) 50000 40000 Loss distributed (1:1) (D) 60400 60400 Share (B+C-D) -4400 -12400 Original Loss 16800 Add: Total of salary and interest (A+B) 104000 Net Loss 120800

Partnership : It is an organization in which two or more person join together to do a business in which they all share profit and losses in an agreed ratio. One or more partners are acting in behalf of all partners. Each partner is responsible for the act of firm. Requirement-1: To Calculate: Share of partner. Partner 1 Partner 2 Share 53400 45400 Calculation of Partners Share Partner 1 Partner 2 Opening Capital (A) 60000 80000 Interest (A10%)= B 6000 8000 Salary (C) 50000 40000 Loss distributed (1:1) (D) 2600 2600 Share (B+C-D) 53400 45400 Original Profit 98800 Less: Total of salary and interest (A+B) 104000 Net Loss -5200 Concept Introduction: Partnership: It is an organization in which two or more person join together to do a business in which they all share profit and losses in an agreed ratio. One or more partners are acting in behalf of all partners. Each partner is responsible for the act of firm. Requirement-2: To Calculate: Share of partner. Partner 1 Partner 2 Share -4400 -12400 Calculation of Partners Share Partner 1 Partner 2 Opening Capital (A) 60000 80000 Interest (A10%)= B 6000 8000 Salary (C) 50000 40000 Loss distributed (1:1) (D) 60400 60400 Share (B+C-D) -4400 -12400 Original Loss 16800 Add: Total of salary and interest (A+B) 104000 Net Loss 120800

Solution Summary: The author explains that partnership is an organization in which two or more person join together to do a business where they share profit and losses in an agreed ratio.

Connect Access Card for Financial Accounting: Information and Decisions

Connect Access Card for Financial Accounting: Information and Decisions

8th Edition

ISBN: 9781259662966

Author: John J Wild

Publisher: McGraw-Hill Education

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Chapter D, Problem 4E

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