On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash Accounts receivable Inventory Furniture & fixtures, net Total Accounts payable A, Capital (70%) B, Capital (30%) Total 30,000 380,000 260,000 120,000 790,000 165,000 350,000 275,000 NTIA C offered to buy for $760,000 the partnership assets including liabilities but excluding cash and after certain assets are to be restated to their fair values as follows: 90,000 Accounts receivable, P350,000 Inventory, P250,000 Furniture, P135,000 How much will A and B receive as final settlement of their partnership interests?
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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