Maxine and Paula are partners who share profits and losses in the ratio 3:1. Their trial balance as at 2018 December 31 was as follows: Sales Office salaries Office expenses Mortgage interest Purchases Stock at 2018 January 01 Bank Creditors Debtors Fixtures Provision for depreciation on fixtures 25 000 12 630 8.000 245 500 70 000 24 000 22 000 295 500 42 180 22 350 6600
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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