MM, NN and PP are partners with capital balances of P350,000, P250,000 and P350,000 respectively and sharing profits 30%, 20% and 50%, respectively. Partners agreed to dissolve the business and upon liquidation, all of the partnership assets are sold and sufficient cash is realized to pay all the claims except one for P50,000. PP is personally solvent, but the other two partners are able to meet any indebtedness to the firm. On the remaining claim against the partnership, MM is to absorb: MM, NN and PP are partners with capital balances of P350,000, P250,000and P350,000 respectively and sharing profits 30%, 20% and 50%,respectively. Partners agreed to dissolve the business and upon liquidation,all of the partnership assets are sold and sufficient cash is realized to payall the claims except one for P50,000. PP is personally solvent, but theother two partners are able to meet any indebtedness to the firm. On theremaining claim against the partnership, MM is to absorb: *P25,000P15,000P40,000P30,000

In a partnership, the profits and losses are shared according to the profit-sharing ratio agreed in…

Answered: MM, NN and PP are partners with capital…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

MM, NN and PP are partners with capital balances of P350,000, P250,000 and P350,000 respectively and sharing profits 30%, 20% and 50%, respectively. Partners agreed to dissolve the business and upon liquidation, all of the partnership assets are sold and sufficient cash is realized to pay all the claims except one for P50,000. PP is personally solvent, but the other two partners are able to meet any indebtedness to the firm. On the remaining claim against the partnership, MM is to absorb:

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.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions