Partnership Operation and

Distribution of Profit
Learning Objectives
Profit and Loss Sharing
(ART. 1797)
Application of the Laws on
Profit and Loss Sharing
Law on Partnership’s Liability and Partners’ Share
in the Liability of the Partnership (ART. 1816 )
Prohibitions of Partners
to Engage in Business
Capital Account
Drawing or Withdrawal Account
Loan Accounts
Interest in the Partnership and Share in
Profit
Recording the Distribution
of Profit and Loss
Two Methods of Recording
the Result of Operation
The Direct Method
Distribution of Profits and Losses
Methods of Profit Distribution
Profit and Loss Division for Allowance, Interest,
Salaries, and Bonuses
ADDITIONAL ILLUSTRATIVE PROBLEMS
Partnership Taxation
Various Bonus Agreements
of Managing Partner