Answered: an, already past due, in the amount of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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3.Octillery and Delibird agreed to list down the following assets to be contributed to the partnership: Octillery P20,000 15000 Delibird P30,000 15,000 40,000 Cash Inventory Building Furniture & Fixture The building is subject to a mortgage loan, already past due, in the amount of P10,000. Octillery paid this out of his personal funds aside from his cash contribution above. Partners agreed that Octillery should be credited for this. Partnership agreement calls for even division of profits and losses. Required What amount should be listed as capital for each of the partners?

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.

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