A and B formed a partnership. The partnership agreement stipulates the following: . Annual salary allowances of P100,000 for A and P70,000 for B. • Bonus to A of 10% of profit after partner's salaries and bonus. . The partners share profits and losses on a 50:50 ratio. During the period the partnership incurred loss of P500,000. How much is the share of A in th partnership results of operations during the period? Your answer
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 2 steps
