On January 1, 2022, A, B and C formed ABC Partnership with agreed capital of P1,200,000 or P400,000 each. Profit is to be allocatec equally. C is appointed as the managing partner. Capital/Drawings transactions during the year: . A, B and C made additional investments of P200,000 each respectively. . At the end of year, A, B and C made drawings of P50,000, P30,000 and P40,000, respectively. . At the end of year, the capital balance of B is reported at P400,000. Compute the ending capital of C.
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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