Veda Moore and Gordon Anderson have a partnership agreement with the following provisions for sharing profit or loss: A salary allowance of $29,000 to Moore and $37, 300 to Anderson An interest allowance of 5% on capital balances at the beginning of the year The remainder to be divided between Moore and Anderson on a 2:3 basis The capital balances on January 1, 2024, for Moore and Anderson were $77, 100 and $94, 900, respectively. For the year ended December 31, 2024, the Moore Anderson Partnership had sales of $ 319,600; cost of goods sold of $235,000; operating expenses of $122, 200; V. Moore drawings of $22,582; and G. Anderson drawings of $27,072. Prepare a statement of partners equity for a year.
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.
Step by step
Solved in 3 steps with 2 images
