Answered: On August 20, 2030, T, U and V form a…

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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Question

On August 20, 2030, T, U and V form a partnership investing cash of P105,000; P94,500 and P29,400, respectively. The partners share profits 3:2:2 and on November 30, 2030, they have cash of P7,000, and other assets of P332,500; liabilities are P1 79,200. On this date they decided to go out of business and sell all the assets for P210,000. V has personal assets of P10,500 that may, if necessary be used to meet partnership obligations.What is the amount received by partner U at the end of liquidation?

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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