Adee admitted Das as a partner in a business. The balance sheet of Adee on July 30, 2019 before the admission of Das shows: Cash 31,200 Receivables 144,000 Inventory Accounts Payable 216,000 74,400 Adee, Capital In order to establish Das Interest, the partners agreed on the following: 316,800 An allowance of doubtful accounts of 2% is to be established Merchandise Inventory is to be valued at P242,400 Prepaid Expenses of P4,200 and accrued expenses of P4,800 are to be recognized
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.
3. For Das to obtain a 1/3 interest in the
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