Interest is charged on the partners' drawings at 7% per annum. Their drawings during the year to 31 October 2020 were as follows: JohnRM30,000 LeeRM20,000 TonyRM3,000 The account open from 1 November 2019
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.
Interest is charged on the partners' drawings at 7% per annum. Their drawings during the year to 31 October 2020 were as follows:
JohnRM30,000
LeeRM20,000
TonyRM3,000
The account open from 1 November 2019
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