Distribution of Profit & Loss: Fill In the Blanks

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on March 25, 2022

1. A partnership is an between two or more persons who combine their assets to carry on a business.

2. The difference between a partnership and a sole proprietorship is that of .

3. A partnership is formed by a written or agreement.

4. Liability of partners in a partnership business is .

5. In the absence of an agreement, the income sharing ratio between partners is .

6. The salary of a partner is to be debited to the income summary the distribution of income.

7. The minimum number of partners in partnership business is whereas the maximum is in a banking business and in an ordinary business.

8. Terms and conditions regarding partnership are combined in the .

9. In the absence of an agreement among the partners, rules laid down in the will be applied.

Frequently Asked Questions

What is the Profit and Loss Statement?

The Profit and Loss Statement (P&L) is a Financial Statement that summarizes a company’s revenues and expenses over a specific period. The P&L shows whether a company has made or lost money during that period.

What are some everyday expenses on the Profit and Loss Statement?

The Profit and Loss Statement is essential because it shows its overall financial health. The P&L can help investors, creditors, and management make decisions about the company’s future.

What are some everyday expenses on the Profit and Loss Statement?

What are some everyday expenses on the Profit and Loss Statement?

What is the difference between revenue and income?

Revenue is the total amount of money a company brings in from its operations. Income is the amount of money that remains after subtracting expenses from revenue. In other words, income is the profit a company makes.

How can I use the Profit and Loss Statement to improve my business?

The Profit and Loss Statement can help a business make informed decisions about its future. The P&L can help companies identify areas where they are making or losing money and then correct the situation. For example, if a company fails money on its product line, it might consider discontinuing that product.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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