D, E, and F are partners with a profit and loss ratio of 5:4:1, respectively. The partnership is to be liquidated. Prior to the liquidation, the statement of financial position shows the following balances Cash P 80,000 Liabilities P 80,000 Other Assets 720,000 D, Capital 320,000 E, Capital 240,000 F, Capital 160,000 After realization, E received P 120,000 as settlement of his interest. How much was the loss on the sale of assets? How much did F receive in final settlement of his interest? What amount of total cash was distributed to the Partners?
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.
D, E, and F are partners with a
Cash P 80,000 Liabilities P 80,000
Other Assets 720,000 D, Capital 320,000
E, Capital 240,000
F, Capital 160,000
After realization, E received P 120,000 as settlement of his interest.
- How much was the loss on the sale of assets?
- How much did F receive in final settlement of his interest?
- What amount of total cash was distributed to the Partners?
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