Additional information: A. The personal assets (excluding partnership capital and loan interests) and personal liabilities of each partner as of Dec. 1,2021, are presented below: Shadow Personal assets Personal liabilities Personal net worth Ego Self- 250,000 254,000 350,000 (230,000) (240,000) (375,000) 20,000 14,000 (25,000) B. Shadow, Ego, and Self share profit and losses in the ratio of 20:40:40, respectively C. All of the non-cash assets were sold on December 10,2021 for P240,000. Required: 1. Statement of liquidation. 2. Journal entries.
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.
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