in 200,000 Gerwin 300,000 Froilan 450,000 The partnership agreement stated that profits and losses are to be shared equally by the partners after consideration for the following: 1. Annual salaries to partners: 60,000 for Marvin, 48,000 for Gerwin and 36,000 for Froilan. 2. 10% interest on average capital 3. 10% of net profit after salaries and interest as bonus to Marvin as the managing partner. On October 1, 2020, Marvin made additional investment of 60,000, on the residual profit after salaries and Froilan invested 30,000 on Dec. 1,2020. If each partner received 30,000 on the
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.
Marvin, Gerwin, Froilan formed a
Marvin 200,000
Gerwin 300,000
Froilan 450,000
The partnership agreement stated that
1. Annual salaries to partners: 60,000 for Marvin, 48,000 for Gerwin and 36,000 for Froilan.
2. 10% interest on average capital
3. 10% of net profit after salaries and interest as bonus to Marvin as the managing partner.
On October 1, 2020, Marvin made additional investment of 60,000, on the residual profit after salaries and Froilan invested 30,000 on Dec. 1,2020. If each partner received 30,000 on the residual profit after salaries, interest, and bonus, the net income reported by the partnership during the 6 moths of operation is.
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