On December 31, 202, the Statement of Financial Position of UFC Partnership shows the following data with profit or loss sharing of 2:3:5. What is the net proceeds from the sale of non-cash assets during January 2021?
On December 31, 202, the Statement of Financial Position of UFC Partnership shows the following data with profit or loss sharing of 2:3:5. What is the net proceeds from the sale of non-cash assets during January 2021?
On December 31, 202, the Statement of Financial Position of UFC Partnership shows the following data with profit or loss sharing of 2:3:5. What is the net proceeds from the sale of non-cash assets during January 2021?
On December 31, 202, the Statement of Financial Position of UFC Partnership shows the following data with profit or loss sharing of 2:3:5. What is the net proceeds from the sale of non-cash assets during January 2021?
Transcribed Image Text:P15,000,000 Liabilities to others
40,000,000 U, Capital
F, Capital
C, Capital
Cash
P20,000,000
15,000,0000
12,500,000
7,500,000
Other Noncash asset
On January 1, 2021, the partners decided to wind up the partnership affairs. During the winding up, liquidation
expenses amounted to P2,000,000 were paid. Non-cash assets with book value of P30,000,000 were sold during
January. 40% of total liabilities were also paid during January. P3,000,000 cash was withheld during January for
future liquidation expenses. On January 31, 2021, partner U received P10,000,000.
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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