Hans, Sam and Mia are partners who share profits and losses in the ratio of Sam and Mia respectively. Position of the partnership as of December 31, 2017 is given as follows: 35:25:40 to Hans, The statement of Financial Assets Liabilities and Equity P 120,000 Liabilities 1,650,000 Cash P1,050,000 Noncash Assets 41,400 257,700 Loan from Hans Hans, Capital Sam, Capital Mia, Capital 90,000 330,900 On January 10, 2018, the partners decided to liquidate. of liquidation, Non-cash assets with a book value of P1,000,000 was sold for P975,000. withheld P10,000 cash. In the first month The partnership also paid P20, 000 liquidating expenses and P300,000 of the liabilities remain unpaid. Determine how much will Hans receive in the first cash distribution. 12,100 2,900 А. 52,350 С. 48,900 Determine the ending capital of Mia after the first cash distribution. 312,900 310,000 В. D. 264,000 260,000 А. С. В. D.
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.
![Problem 1
Hans, Sam and Mia are partners who share profits and losses in the ratio of
and Mia respectively.
Position of the partnership as of December 31, 2017 is given as follows:
35:25:40
to
Hans,
Sam
The
statement
of
Financial
Assets
Liabilities and Equity
P 120,000
1,650,000
Cash
Liabilities
P1,050,000
Noncash Assets
Loan from Hans
41,400
Hans, Capital
Sam, Capital
Mia, Capital
257,700
90,000
330,900
On January 10, 2018, the partners decided to liquidate.
In the first month
of liquidation, Non-cash assets with a book value of P1,000,000 was sold for
paid
liquidating expenses
P975,000.
withheld P10,000 cash.
The
partnership
also
P20,000
and
P300,000 of the liabilities remain unpaid.
Determine how much will Hans receive in the first cash distribution.
52,350
48,900
12,100
2,900
А.
С.
В.
D.
Determine the ending capital of Mia after the first cash distribution.
312,900
310,000
А.
С.
264,000
В.
D.
260,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F759898e7-ef8e-4a46-bf1a-6b0823662092%2Fe7c1656f-a628-4d6e-8365-556cc00305d1%2F2b4c19_processed.jpeg&w=3840&q=75)
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