Partnership : It is an organization in which two or more person join together to do a business in which they all share profit and losses in an agreed ratio. One or more partners are acting in behalf of all partners. Each partner is responsible for the act of firm. Requirement-1: To Give: Calculate the share of partner. Partner 1 Partner 2 Partner 3 Profit = 249000 (equally) 83000 83000 83000 Calculation of Partners Share in Profit Partner 1 Partner 2 Partner 3 Opening Capital (A) 80000 112000 128000 Profit = 249000 (equally) 83000 83000 83000 Concept Introduction: Partnership: It is an organization in which two or more person join together to do a business in which they all share profit and losses in an agreed ratio. One or more partners are acting in behalf of all partners. Each partner is responsible for the act of firm. Requirement-2: To Give: Calculate the share of partner. Partner 1 Partner 2 Partner 3 Profit (80:112:128) 62250 87150 99600 Calculation of Partners Share in Profit Partner 1 Partner 2 Partner 3 Opening Capital (A) 80000 112000 128000 Profit (80:112:128) 62250 87150 99600 Concept Introduction: Partnership: It is an organization in which two or more person join together to do a business in which they all share profit and losses in an agreed ratio. One or more partners are acting in behalf of all partners. Each partner is responsible for the act of firm. Requirement-3: To Give: Calculate the share of partner. Partner 1 Partner 2 Partner 3 Share of partners 79000 72200 97800 Calculation of Partners Share in Profit Partner 1 Partner 2 Partner 3 Opening Capital (A) 80000 112000 128000 Salary 66000 56000 80000 Interest (A*10%)= B 8000 11200 12800 Remaining Profit 5000 5000 5000 Share of partners 79000 72200 97800 Original Profit 249000 Less: Total of salary and interest (A+B) 234000 Net Profit 15000

Connect Access Card for Financial Accounting: Information and Decisions

8th Edition

ISBN: 9781259662966

Author: John J Wild

Publisher: McGraw-Hill Education

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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 …

Partner Admission and Withdrawal

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