YES Partnership started operations on January 1 , 2016 with the following capital balances : Yves P88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions : Yves will be given an annual salary of P15,000 and Ernest P10,000 All partners will be given 20 % interest on beginning capital balances every year Bonus of 25% of Net Income will be given to Serge The balance of the profit , or the loss , will be divided on a 4/5 / 1 to Yves , Ernest and Serge , respectively . A. Assuming that the company resulted in a net loss of 250.000 in 2016 : 1. What is the share of Yves in Net Profit or Net Loss for 2016 ? 2. What is the share of Ernest in Net Profit or Net Loss for 2016 ? 3. What is the share of Ernest in Net Profit or Net Loss for 2016?
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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