Claire, Gdyan and Artchie decided to dissolve the partnership on November 30, 2020. Their capital balances and profit ratio on this date is the following: Capital Balances Profit Ratio Claire P50,000 40% Gdyan 60,000 30% Artchie 20,000 30% The net income from January 1 to November 30, 2020 is P44,000. Also on this date, cash and liabilities are P40,000 and P90,000, respectively. For Claire to receive P55,200 in full settlement of her interest in the firm, how much must be realized from the sale of the firm’s non-cash assets? a. P196,000 c. P193,000 b. P177,000 d. P187,000
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.
Claire, Gdyan and Artchie decided to dissolve the
capital balances and profit ratio on this date is the following:
Capital Balances Profit Ratio
Claire P50,000 40%
Gdyan 60,000 30%
Artchie 20,000 30%
The net income from January 1 to November 30, 2020 is P44,000. Also on this date, cash
and liabilities are P40,000 and P90,000, respectively. For Claire to receive P55,200 in full
settlement of her interest in the firm, how much must be realized from the sale of the firm’s
non-cash assets?
a. P196,000 c. P193,000
b. P177,000 d. P187,000
Step by step
Solved in 2 steps
