DDs Partnership with partners D1 and D2 had a net income of P25,000 for the month of Sept 30, 2020. D3 purchased an interest in the partnership of DDs by paying D1 P70,000 for half of his capital interest. At this time, the updated capital balances of D1 and D2 are P96,000 and P168,000 respectively, D3 should receive a credit to his capital account of
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.
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