Income Statement / Profit and Loss Statement for partnership
Partnership Statement
- Profit and loss is split according to original capital contributions or as agreed
- Profit and loss is after deduction of the salary owed to the partners (partners are usually paid salary if they are active in the business or as per agreed in the partnership agreement)
- No taxation is shown
Difference between partnership and sole proprietor is in distribution of profit
1. For a sole proprietor, all is passed to the owner.
2. For a partnership, the split of profit (loss) is in accordance with partnership agreement
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