Partners Cammayo and Tac-an share profits and losses in the ratio of 7:3, respectively. On Feb. 1, 2018, their capital account balances were: Cammayo-P70,000; Tac-an-P60,000. Cammayo and Tac-an agreed to admit Hernandez as a partner with a one-third interest in the partnership capital and profits and losses for an investment of P50,000. The new partnership will begin with total capital of P180,000. Immediately after Hernandez’s admission to the partnership, the capital account balances of Cammayo, Tac-an, and Hernandez, respectively, are:
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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