he partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a P10,000 salary and Brook receives a P15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is:
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.
The
respectively after Tatum receives a P10,000 salary and Brook receives a P15,000 salary.
Prepare a schedule showing how the
profit or loss for the year is:
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