1, 2019, Aglugob was admitted into the partnership with a 10% share in profits. The old partners continue to participate in profits in their original ratio. For 2019, the profit of the partnership was reported as P12,500. However, it was discovered that the following items were omitted in the firm's books: Unrecorded at year-end 2018 2019 P800 Prepaid Expense Accrued Expense P600 700 Unearned Income 500 Accrued Income The new profit and loss ratio for Guillermo, and the share of partner Cumagun in the 2019 profit would be а. 30% and P2,214. С. 27% and P2,286. b. 27% and P2,214. d. 30% and P2,286.
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.
Step by step
Solved in 3 steps
