Manuel and Marcus are partners with the following capital balances as at June 30, 20xx with their respective profit and loss ratio: Capital P3,000,000 P4,500,000 Profit and Loss Ratio Mamuel 40 % Marcus 60.% On July 1, 20xx Marshall is admitted to the partnership when he purchased proportionate interest from Manuel and Marcus in the net assets and profits of the partnership for P2,700,000. As a result Marshall acquired 1/3 interest in the net assets and profits of the firm.
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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