Show solution 1) On August 31 , 2005 Apple , Pole , and Ole decided to liquidate their partnership . Their capital accounts and profit sharing ratios are as follows : Capital P/L ratio Apple P150,000 50% Pole 255,000 30% Ole 135,000 20% On this date , there were liabilities of P187,500 still unpaid and the cash balance was zero Apple is Insolvent . If Ole received a total of P22,500 , Pole would have received:
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.
Show solution
1) On August 31 , 2005 Apple , Pole , and Ole decided to liquidate their partnership . Their capital accounts and profit sharing ratios are as follows :
| Capital | P/L ratio | |
| Apple | P150,000 | 50% |
| Pole | 255,000 | 30% |
| Ole | 135,000 | 20% |
On this date , there were liabilities of P187,500 still unpaid and the cash balance was zero Apple is Insolvent .
If Ole received a total of P22,500 , Pole would have received:
Step by step
Solved in 2 steps with 1 images
