Randy and Joseph share profits and losses in a 7:3 ratio. Partnership books show the following before liquidation: Cash: P 30, 000; A/R (net): P 380, 000; Inventory: P 260, 000; Furniture (net): P 120, 000; A/P: P 165, 000; Randy, Capital: P 350, 000; Joseph, Capital: P 275, 000. Rosauro offered to buy the partnership assets and liabilities, excluding the cash, for P 760, 000 after they are restated at fair values. The fair values of the non-cash assets are as follows: A/R: P 350, 000; Inventory: P 250, 000: Furniture: P 135. 000. How much will Randy and Joseph receive as final settlement of their partnership interest? *
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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