Sunny and roan are partners sharing profits their books showed capital employed

General
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sunny and roan are partners sharing profits their books showed capital employed

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It looks like you’re talking about Sunny and Roan, who are partners in a business. Let’s break this down:

Understanding Partnership Capital

Answer:
In a partnership like Sunny and Roan’s, the term capital employed refers to the total amount of capital used for running the business. This usually includes the partners’ capital contributions plus any retained earnings and reserves.

Key Points:

  1. Capital Employed: This is the total value of all assets used in a business, minus current liabilities. It’s a measure of the value invested in the business operations.

  2. Partners’ Capital: Each partner contributes a certain amount to the business, which is reflected in their individual capital accounts.

  3. Profit Sharing: Typically, partners agree on a ratio for sharing profits (and losses). This might be based on their capital contributions or a separate agreement.

  4. Importance of Records: Keeping accurate books helps track the capital employed and ensure that profits are shared accurately according to their agreement.

Summary: Sunny and Roan, as partners, will have agreed upon how to share profits based on their capital contributions and any other terms they set, all of which will be reflected in the capital employed.

If you have more specific information or a question related to this partnership, feel free to ask! @user