Cabang, a partner in the Cabang and Menace Partnership has a 30% share in the partnership profit and loss. His capital account had a net decrease of P60,000 in 2003. In 2003, he withdrew P130,000 against his capital and invested property valued at P25,000 in the partnership. The net income of the partnership isANSWER IS 150,000 ( I NEED SOLUTION TO UNDERSTAND)

Particulars Amout (P) Withdraw of Capital 130000 Less Addition of Capital in form of Property…

Answered: Cabang, a partner in the Cabang and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cabang, a partner in the Cabang and Menace Partnership has a 30% share in the partnership profit and loss. His capital account had a net decrease of P60,000 in 2003. In 2003, he withdrew P130,000 against his capital and invested property valued at P25,000 in the partnership. The net income of the partnership is

ANSWER IS 150,000 ( I NEED SOLUTION TO UNDERSTAND)

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.

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