In a partnership firm there are two partners – X and Y. They share profit in the ratio of 55% and 45%. X contributed capital of OMR 180,000 and Y contributed OMR 160,000. Partnership Agreement says partners are eligible to get interest on capital at 10%. Income Statement of a Partnership firm shows the net profit of OMR 200,000. How much profit X and Y will receive from the partnership?
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.
In a partnership firm there are two partners – X and Y. They share profit in the ratio of 55% and 45%. X contributed capital of OMR 180,000 and Y contributed OMR 160,000. Partnership Agreement says partners are eligible to get interest on capital at 10%.
Income Statement of a Partnership firm shows the net profit of OMR 200,000.
How much profit X and Y will receive from the partnership?
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