Adnan, Ahmad and Ali are partners in a firm. partners share net income based on ending partners' capital balances. Their capital on 1/1/2020 $100,000, $80,000, $70,000 respectively. During 2020, the partnership earned net income of $100,000, Adnan reduce his capital of $20,000, Ahmad made drawings of $10,000, and introduced additional capital of $25,000. While Ali reduce his capital of $5,000. Ali's share profit is O 28000 26000 42000 O 32000 other question will save this response Question 20 of 22 o o o o
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
