Capital balances and profit and loss sharing ratios of the partners in the JCK Entertainment Gallery are as follows: John Paul, Capital (50%) P140,000 Cherry Ann, Capital (30%) 160,000 Ken John, Capital (20%) 100,000 Total P400,000 John Paul needs money and agrees to assign half of his interest in the partnership to Korena for P90,000 cash. Korena pays directly to John Paul. Korena does not become a partner. What is the total capital of the JCK Partnership immediately after the assignment of the interest to Korena. a. P310,000 c. P490,000 b. 200,000 d. 400,000
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.
Capital balances and
Gallery are as follows:
John Paul, Capital (50%) P140,000
Cherry Ann, Capital (30%) 160,000
Ken John, Capital (20%) 100,000
Total P400,000
John Paul needs money and agrees to assign half of his interest in the partnership to Korena
for P90,000 cash. Korena pays directly to John Paul. Korena does not become a partner.
What is the total capital of the JCK Partnership immediately after the assignment of the
interest to Korena.
a. P310,000 c. P490,000
b. 200,000 d. 400,000
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