XYZ Partnership has total Capital investments of P300,000 invested equally. Annual salaries amounting to P20,000, P25,000 and P10,000 to Partners X, Y and Z. Y, an industrial partner will be allowed Bonus of P35,000. Any remainder will be divided in the ratio 4:3:3. Partner X will have a capital balance of how much after the distribution of net income of P120,000?
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.
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