Able and Carter are partners in a business providing security products. The following information relates to their partnership. Trial Balance (extract) as at June 30, 2021 prior to appropriation of profits Debit Credit Capital - Able 40,000 Capital - Carter Current - Able 60,000 7,000 Current- Carter 5,000 Salary - Able Salary-Carter Advance to Able 15,000 15,000 12,000 Loan from Carter
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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