Problem Solv ing: On January 1,2018, John and Frank decided to form a partnership. At the end of the year, the partnership made a net income of P120,000. The capital accounts of the partneship show the following transactions: John, Capital Frank, Capital Dr. Cr. Dr. Cr. Jan. 1 P40,000 P25,000 Apr. 1 P5,000 Jun. 1 10,000 Aug. 1 10,000 Sep. 1 P3,000 Oct. 1 5,000 1,000 Dec. 1 4,000 5,000
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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