A, B and C are partners of Push-it Partnership. Their capital balances are A- P400, B - P280 and C - P120. The following are their agreement in their profit sharing: 25% bonus to A based on profit after deducting the said bonus. B and C will be given 10% interest each on their capital balances. The remaining profits will be shared in the ratio of 5:2:1 for A, B and C respectively. How much is the profit share of A if the profit is P90? How much will be the income (loss) if the share ofA is P255? How much will be the income (loss) if the share of B is P21? How much will be the income (loss) if the share of C is P3?
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 and C are partners of Push-it
Their capital balances are A- P400, B - P280 and C - P120.
The following are their agreement in their profit sharing:
25% bonus to A based on profit after deducting the said bonus.
B and C will be given 10% interest each on their capital balances.
The remaining profits will be shared in the ratio of 5:2:1 for A, B and C respectively.
How much is the profit share of A if the profit is P90?
How much will be the income (loss) if the share ofA is P255?
How much will be the income (loss) if the share of B is P21?
How much will be the income (loss) if the share of C is P3?
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