G. Bench, Mark, Spencer, and Lee are partners, sharing earnings in the ratio of 3:4:6:8, respectively.The balances of their capital accounts on December 31, 2019 are as follows:Bench - P 1,000Mark - P 25,000 Spencer - P 25,000Lee - P 9,000The partners decide to liquidate, and they accordingly convert the non-cash assets into P 23,200of cash. After paying the liabilities amounting to P 3,000, they have P 22,200 cash to divide.Assume that a debit balance of any partners' capital is uncollectible.1.How much is the cash balance before realization?2.How much is the share of Bench in the loss upon conversion of the non-cash assets into cash?

Given as, Bench- P 1,000 Mark- P 25,000 Spencer- P 25,000 Lee- P 9,000

Answered: ee are partners, sharing earnings in…

ee are partners, sharing earnings in the ratio of 3:4:6: accounts on December 31, 2019 are as follows: -P 25,000 Spencer - P 25,000 Lee -P 9,000

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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Concept explainers

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.

Question

G. Bench, Mark, Spencer, and Lee are partners, sharing earnings in the ratio of 3:4:6:8, respectively.
The balances of their capital accounts on December 31, 2019 are as follows:
Bench - P 1,000
Mark - P 25,000 Spencer - P 25,000
Lee - P 9,000
The partners decide to liquidate, and they accordingly convert the non-cash assets into P 23,200
of cash. After paying the liabilities amounting to P 3,000, they have P 22,200 cash to divide.
Assume that a debit balance of any partners' capital is uncollectible.
1.
How much is the cash balance before realization?
2.
How much is the share of Bench in the loss upon conversion of the non-cash assets into cash?

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