On January 1, 2022, Bon Hok, Dyon Ok and Meow Meng agreed to form a partnership with the following contribution: Bon Hok, a general partner, contributed cash P 150,000 and shares 45% for profits and losses. Dyon OK is a limited partner, contributed his Brand New Motorcycle costing P 150,000 and shares 40% for profits and losses Meow Meng is an industrial partner contributing his personal services and shares 15% in the partnership profits.
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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