IV On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 6:1:3 of partners A, B and C respectively, revealed the following data: Cash 1,000,000 Other Liabilities 2,000,000 Receivable from A 500,000 Payable to B 1,000,000 000
IV On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 6:1:3 of partners A, B and C respectively, revealed the following data: Cash 1,000,000 Other Liabilities 2,000,000 Receivable from A 500,000 Payable to B 1,000,000 000
IV On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 6:1:3 of partners A, B and C respectively, revealed the following data: Cash 1,000,000 Other Liabilities 2,000,000 Receivable from A 500,000 Payable to B 1,000,000 000
How much cash was received by A at the end of partnership liquidation?
Transcribed Image Text:IV On December 31, 2020, the Statement of Financial Position of ABC Partnership
with profit or loss ratio of 6:1:3 of partners A, B and C respectively, revealed the
following data:
Cash 1,000,000
Other Liabilities 2,000,000
Receivable from A 500,000
Payable to B 1,000,000
Other non cash assets 2,000,000 Payable to C 100,000
A, Capital 700,000
B, Capital (650,000)
C, Capital 350,000
On January 1, 2021, the partners decided to liquidate the partnership. All partners are
legally declared to be personally insolvent. The other non cash assets were sold for
P1,500,000. Liquidation expenses amounting to P100,000 were incurred.
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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