X, Y and Z are partners sharing profits in the ratio 3:21, respectively Capital accounts are P 500,000, P300,000 and P 200,000 for X, Y and Z, respectively on December 31, 2021, when Z decided to withdraw. It is agreed to pay P 300,000 for Z's interest. Profits after the retirement of Z are to shared equally Assuming the use of bonus method, how much is the capital balance of X after the retirement of 2
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.
Step by step
Solved in 3 steps