The account balances shown below was prepared just prior to the liquidation of the partnership of Jack, Lozada, Mike, Neri. Partners share in the profits and losses in the ratio 4:2:1:1 Cash P50,000 Liabilities P450,000 Other Assets 950,000 Neri, Loan 37,500 Receivable 62,500 Jack, Capital 381,250 from Jack Lozada, Capital 93,750 Mike, Capital 50,000 Neri, capital 50,000 Other assets are sold for P500,000 and available cash is distributed to the proper parties. Compute for the following independent of each other. 1. How much will Jack receive for his capital, if Lozada is insolvent? 2. How much cash will Neri receive upon liquidation for his capital if no one is insolvent?
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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