13. King, Queen and Prince are partners sharing profit and loss in the ratio of 2:1:1 respectively. Their capital balances are P400.000 for King, P200,000 for Queen and P100.000 for Prince. Claims of suppliers amounted to P500,000 including the loan extended by Prince, P0,000. The cash balance amounted to P300,000 and increased to P1,050,000 as a result of the sale of the non-cash assets. How much was the cash proceeds? a. P1,100,000 b. P800,000 c. P750,000 d. P1,050,000 e. answer not given
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
13. King, Queen and Prince are partners sharing
How much was the cash proceeds?
a. P1,100,000
b. P800,000
c. P750,000
d. P1,050,000
e. answer not given
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