Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 2 - No. 45)
What is the general formula for calculating profit sharing?
Profit before appropriations.
Profit - Drawings
Net profit - partner salaries - interest on capital + interest on drawings
Net profit + Partner Salaries
Explanation
Profit share = Net profit - partner salaries - interest on capital + interest on drawings.
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