Radcliffe, Sonders, and Towers, who share in income and losses in the ratio of 2:3:5, decided to discontinue operations as of April 20 and liquidate their partnership. After the accounts were closed on April 20, the following trial balance was prepared:
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.
Radcliffe, Sonders, and Towers, who share in income and losses in the ratio
of 2:3:5, decided to discontinue operations as of April 20 and liquidate their
partnership. After the accounts were closed on April 20, the following trial
balance was prepared:
Cash 5,900
Noncash Assets 109,900
Liabilities 26,800
Radcliffe, Capital 14,600
Sonders, Capital 27,900
Towers, Capital 46,500
Total
115,800 115,800
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