Presented below is the condensed balance sheet of the partnership of Aballa, Baligod, and Cabasag who share profits and losses in the ratio of 6:3:1, respectively: Cash P276,250 Liabilities 1,348,750 Aballa, capital Baligod, capital Cabasag, capital P260,000 Other assets 819,000 409,500 136,500 P1,625,000 Total P1,625,000 Total The partner agree to sell Dalisay 20% of their respective capital and profit and loss interest for a total payment of P292,500. The payment by Dalisay is to be made directly to the individual partners. The capital balance of Aballa Baligod, and Cabasag respectively after admission of Dalisay are:
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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