A and B formed a partnership. The partnership agreement stipulates the following: * First, A shall receive 10% of profit up to P100, 000 and 20% over P100, 000. * Second, B shall receive 5% of the remaining profit over P150, 000. * Any remainder shall be shared equally The partnership earned profit of P150, 000 Requirement: Compute for the respective shares of the partners in the 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.
- A and B formed a
partnership . The partnership agreement stipulates the following: * First, A shall receive 10% of profit up to P100, 000 and 20% over P100, 000. * Second, B shall receive 5% of the remaining profit over P150, 000. * Any remainder shall be shared equally
The partnership earned profit of P150, 000
Requirement: Compute for the respective shares of the partners in the profit.
Step by step
Solved in 2 steps with 1 images
