REQUIRED: Show how the net profit will be divided. 3.9 Bah, Lee and Wag have capital balances of P 15,000, P 10,000, and P 20,000, respectively. The partners agreed to the following distribution of profits: a. 10% interest on the capital balances b. Lee is entitled to a salary of P 6,000 c. Wag is guaranteed a minimum share of P 12,000. d. Remainder is to be divided 3:3:4 for Bah, Lee and Wag, respectively.
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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