A and B formed a partnership. The partnership agreement stipulates the following: Annual salary allowance of P40,000 for A. . Interest of 10% on the weighted average capital balance of B. The partners share profits and losses in a 80:20 ratio. During the period the partnership earned profit of P100,000. The movements in B's capital account are as follows: B. Capital 60,000 beg. Aug. 1 withdrawal 30,000 20,000 40,000 Mar. 31 additional investment Oct. 1 additional investment Dec. 1 additional investment 10,000 end. 100,000 How much is the share of A in the partnership profit?
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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