Partnership

What is a partnership?

• A business owned by more than 50 people

• A business owned by one person

• A business owned by two or more people (less than 20)

• A business owned by exactly 2 people

The net profit after appropriation of Partners A, B, C and D is $20,000. They share their profits equally. How much will C receive?

What happens if there is NO partnership agreement?

• Partnership will cease to exist

• Partnership Act will be implemented

• Partnership becomes a Sole Trader

• Nothing will happen

Partnership Act states that if there is no Partnership Agreement, partners will share their profit or losses ____________

Is there an interest on capital or interest on drawing in the Partnership Act?

• Yep, 5% each!

• 5% for interest on capital, 3% for interest on drawings

• 3% for interest on capital,

  5% for interest on drawings

• No interest for both!

Mark where interest on drawings will be in the current account (Mark X on the correct side)

Mark where share of profit will be in the current account (Mark an X on the correct side)

If Partners A and B share their profit in the ratio of 3:2, how much is the share of profit for both partners?

At the end of the financial year (31 December 2020), the following is the information of Partners Q and I's withdrawal of cash for personal use :

Q withdrew $36,000 on 1 July 2020.

I withdrew $18,000 on 1 December 2020.

The partners agree to charge an interest of drawings of 5% per annum. What is the TOTAL interest charged to each partner?

Which of the following is an ADVANTAGE of being in a Partnership?

• Share of profits

• Unlimited Liability

• Decisions affecting the business can be made efficiently

• Joint responsibility