Katie, Lenie and Minnie decided to liquidate their partnership on July 31, 2008. Their capital balances and profit and loss ratios on this date, before liquidation, are:*please refer on the image below CapitalP&L RatioKatieP224,00025%LenieP288,00030%MinnieP128,00045%The net loss from January 1 to July 31, 2008 is P48,000. Also, on this date, cashand liabilities are P136,000 and P232,000, respectively.Which of the ff. is inconsistent with the result of liquidation if Lenie receivedP247,200 in full settlement of her interest in the firm?

In liquidation of partnership from realised amount first outside…

Answered: Katie | bartleby

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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Katie, Lenie and Minnie decided to liquidate their partnership on July 31, 2008. Their capital balances and profit and loss ratios on this date, before liquidation, are:

*please refer on the image below

Capital
P&L Ratio
Katie
P224,000
25%
Lenie
P288,000
30%
Minnie
P128,000
45%
The net loss from January 1 to July 31, 2008 is P48,000. Also, on this date, cash
and liabilities are P136,000 and P232,000, respectively.
Which of the ff. is inconsistent with the result of liquidation if Lenie received
P247,200 in full settlement of her interest in the firm?

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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