The information below are the accounts and balances in the books of a partnership: Sales - 700,000 Partners’ Salaries - 130,000 Cost of Sales - 400,000 Partners’ Drawings - 80,000 Operating Expenses - 100,000 Interest Paid to Banks - 20,000 How much is the partnership net income/(loss)? A. 200,000 B. 180,000 C. 50,000 D. (30,000)
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.
The information below are the accounts and balances in the books of a
Sales - 700,000
Partners’ Salaries - 130,000
Cost of Sales - 400,000
Partners’ Drawings - 80,000
Operating Expenses - 100,000
Interest Paid to Banks - 20,000
How much is the partnership net income/(loss)?
A. 200,000 B. 180,000 C. 50,000 D. (30,000)
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