Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 26 - No. 29)
In a partnership, which of the following is/are considered in the calculation of each partner's share of profit?
Interest on capital
Partners' salaries
Drawings of the partner
Profit-sharing ratio
Explanation
Partners' salaries and interest on capital are usually first accounted for to get the shareable profit which then will be shared by the profit sharing ratio.
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