YES Partnership started operations on January 2, 2016 with the following capital balances: Yves 88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions: - Yves will be given an annual salary of 16,000 and Serge 8,000 - All partners will be given 10% interest on beginning capital balances every year - The balance of the profit, or the loss, will be divided on a 2:3:5 to Yves, Ernest and Serge, respectively. - Each partner is allowed to withdraw up to 8,000 every year In 2016, partnership operations resulted in a net loss of 16,000, while in 2017, it was a net profit of 32,000. All partners withdrew the maximum amount of 8,000 each year. Required: Compute the following: 1. Share in Net Profit or Net Loss for 2016 and 2017 2. Ending Capital of each partner for 2016 and 2017
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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