Albert, Barry and Chum form a partnership on January 1, 2016 investing 24,000, 16,000 and 16,000 respectively; profits are to be shared in the ratio of 2:1:1 respectively. It is agreed that 6% (1/2 of 1% per month) is to be charged on withdrawals that decrease capitals below the original investments. On March 1, Albert withdraws 8,000. Business is unsatisfactory and it is decided to dissolve the partnership. Partnership assets realized 8,000 and the accountant distributes this cash to the proper parties on November 1, 2016. All parties are solvent and proper settlement is made among partners on the same day. How much will Albert contribute to the partnership for the final settlement?
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.
Albert, Barry and Chum form a
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