Stop , Look and Listen formed a partnership on January 1, 2019 with capital contributions of P300,000 P500,000 , and P200,000 respectively . For the year ended December 31, 2019, the partnership reported profit of P450,000 Provide an accurate profit distribution if each partner is allotted an interest of 7% on initial capital contributions and the remainder is divided using the ratio 4/3 / 1
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.
Stop , Look and Listen formed a partnership on January 1, 2019 with capital contributions of P300,000 P500,000 , and P200,000 respectively . For the year ended December 31, 2019, the partnership reported profit of P450,000 Provide an accurate profit distribution if each partner is allotted an interest of 7% on initial capital contributions and the remainder is divided using the ratio 4/3 / 1
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