PROBLEM 3 In January 2018, Nick Marasigan and Dems Asacta agreed to produce and sell chocolate candies. Marasigan contributed P2,400,000 in cash to the business. Asacta contributed the building and equipment, valued at P2,.200,000 and PI,400,000, respectively.The partnership had profits of P840,000 during 2018 but was less successful during 2019, when profit was only P400,000. Required . Prepare the journal entry to record the investment of both partners in the partnership. Determine the share of profit for each partner in 2018 and 2019 under each of the following conditions: 2.
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.
PROBLEM 3 In January 2018, Nick Marasigan and Dems Asacta agreed to produce and sell chocolate candies. Marasigan contributed P2,400,000 in cash to the business. Asacta contributed the building and equipment, valued at P2,.200,000 and PI,400,000, respectively.The partnership had profits of P840,000 during 2018 but was less successful during 2019, when profit was only P400,000. Required . Prepare the
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