The topic is about Partnership Liquidation. Please answer the no. 3 Partners Valerie, Vanessa, Vera and Veronica share profits 50%, 30%, 10% and10%Partners' accounts prior to liquidation follow:Capitals(Cr balances)P1,200,000AdvancesLoans(Dr balances)(Cr balances)ValerieP150,000Vanessa300,000900,000VeraP135,000P 75,000At the moment, P540,000 is available for distribution to the partners.450,000Veronica750,0003. How much cash is to be distributed to Veronica?a. P198,750b. P-0-c. P341,250d. P371,250e. None of the above.

In liquidation, available assets are divided among the partners based on their profit sharing ratio.…

Answered: How much cash is to be distributed to…

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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The topic is about Partnership Liquidation. Please answer the no. 3

Partners Valerie, Vanessa, Vera and Veronica share profits 50%, 30%, 10% and10%
Partners' accounts prior to liquidation follow:
Capitals
(Cr balances)
P1,200,000
Advances
Loans
(Dr balances)
(Cr balances)
Valerie
P150,000
Vanessa
300,000
900,000
Vera
P135,000
P 75,000
At the moment, P540,000 is available for distribution to the partners.
450,000
Veronica
750,000
3. How much cash is to be distributed to Veronica?
a. P198,750
b. P-0-
c. P341,250
d. P371,250
e. None of the above.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.

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