Kat, Mat and Pat are partners with capital balances of P 430,000, P 520,000 and P 470,000 respectively with profit and loss sharing ratio of 2:3:5 respectively. The firm owes Kat P 50,000. Upon liquidation, P 450,000 is available for distribution to the partners. How much cash will each partner receive?
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.
Kat, Mat and Pat are partners with capital balances of P 430,000, P 520,000 and P 470,000 respectively with
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