A and B entered into a partnership on April 1, 2020 by investing the following assets: A - Cash P30,000 and Office Equipment with an agreed value of P200,000. B-Accounts receivable P90,000 and Transportation Equipment of P160,000. The agreement between A and B provides that profits and losses are to be divided into 40% and 60% respectively, and that the partnership is to assume a liability on the Transportation Equipment of P60,000. The partnership further agreed that B is to receive a capital credit equal to his profit and loss ratio. How much cash is to be invested by
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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