A partnership is in the process of liquidation since only one of the partners (ME) is solvent. Capital balances at the time of liquidation were as follows. Profits and losses are divided on a 4:2:2:2 basis, respectively. MA, Capital 60,000 SA, Capital 67,000 YA, Capital 17,000 ME, Capital 96,000 MA’s creditors filed a P25,000 claim against the partnership’s assets. At that time, the partnership held assets reported at P360,000 and liabilities of P120,000. If the assets could be sold for P228,000, what is the minimum amount that MA’s creditors would have received? A. 38,720 C. 2,500 B. 36,000 D. 0
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.
A
(ME) is solvent. Capital balances at the time of liquidation were as
follows.
MA, Capital 60,000
SA, Capital 67,000
YA, Capital 17,000
ME, Capital 96,000
MA’s creditors filed a P25,000 claim against the partnership’s assets. At
that time, the partnership held assets reported at P360,000 and liabilities
of P120,000.
If the assets could be sold for P228,000, what is the minimum amount that
MA’s creditors would have received?
A. 38,720 C. 2,500
B. 36,000 D. 0
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