A balance sheet for the partnership of Mavi, Cong and Viy, who share profits in the ratio of 50:25:25, shows the following balance just before liquidation: Cash P 113,400 Mavi, capital (50%) P 207,900 Other assets P 562,275 Cong, capital (25%) P 146,650 Liabilities P 188,825 Viy, capital (25%) P 132,300 On the first month of liquidation, the following occurs: • Certain assets with book value of P500,000 were sold for P375,000. Liquidation expenses of P9,450 are paid and additional liquidation expenses are anticipated. Liabilities are paid amounting to P51,500 and sufficient cash is retained to ensure the payment to creditors before making payments to partners. On the first payment to partners, Mavi receives P99,537.50. What is the amount of cash withheld for anticipated liquidation expenses? O 20,000 O 30,000 O 25,000 35,000
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.
#4 Pls answer show solution
Step by step
Solved in 4 steps
