Marites, Marilyn and Melody formed the Tres Marias partnership with the following contributions: Marites - cash P50,000; Marilyn – machines with fair value of P40,000 and book value of P50,000; Melody enough cash and an equipment which is mortgaged at P20,000. If Marites, Marilyn and Melody must have interest in capital and profits and losses in the ratio of 5:4:3, respectively, how much is the total assets after partnership formation? * P140,000 P130,000 P120,000 P100,000 answer not given
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.
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