| Clothing | $1,790.50 |
| Furnishings | 176.40 |
| Shoes | 136.25 |
| ———— | |
| $2,103.15 |
Close the books, make statement of trading and profit and loss account. Make a balance sheet.
What were the gross profits for this period?
What were the net profits?
What is the proprietor's present worth?
PARTNERSHIP
29. Legal authorities define a partnership as a combination by two or more persons, of capital, labor, or skill, for the transaction of business for their common profit.
Partnerships may be formed for the purpose of conducting any legitimate business or undertaking, and are created by contract, expressed or implied, between the parties. Partnership agreements need not be in writing, but may be made by oral assent of the parties. Even though they are legal if made orally, partnership agreements should always be made in writing.
30. Partnership Agreements. These should state the date on which the agreement is entered into, the name of the contracting parties, the name by which the partnership is to be known, and the address of the place of business. Following should be a statement of the nature of the business, the amount and form of investment of each partner, the duration of the partnership, the basis of division of profits, provisions for the dissolution of the partnership, definition of the duties of active partners, and a provision for the division of the assets in the event of dissolution or at the termination of the partnership.