Under partnership liquidation Jack and Beans, who share in profits and losses in the ratio of 3:7,decided to liquidate their Talk Partnership. The partners' capitalbalances were P300,000 and P190,000, respectively. | 7. If after all partnership assets are realized and all liabilities aresettled the partnership has remaining cash of P120,000, howmuch will Beans receive from the liquidation?

The question is related to Partnership Accounting and is of liquidation. The details are given…

Answered: | 7. If after all partnership assets…

| 7. If after all partnership assets are realized and all liabilities are settled the partnership has remaining cash of P120,000, how much will Beans receive from the liquidation?

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

Under partnership liquidation

Jack and Beans, who share in profits and losses in the ratio of 3:7,
decided to liquidate their Talk Partnership. The partners' capital
balances were P300,000 and P190,000, respectively.

| 7. If after all partnership assets are realized and all liabilities are
settled the partnership has remaining cash of P120,000, how
much will Beans receive from the 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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