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DIVIDING NET PROFITS OR LOSSES

6 五月, 2015 - 17:10

All members of a partnership are entitled to share profits. If no provisions are set forth in the articles of partnership as to how profits or losses are to be divided, they must be shared equally. Partners commonly receive a salary and an interest allowance. If net income remains after all allowances have been satisfied, the remaining income is split according to agreed proportions. A loss is shared in the same proportions.