The balance sheet of the partnership of Aethan, Ping, and Moi, who share in the Profits and losses in the ratio of 5:3:2, respectively, is as follows: Assets Liabilities and Capital Cash P 30,000 Liabilities P 50,000 Other Assets 320,000 Aethan, Capital 80,000 Ping, Capital 115,000 Moi, Capital 105,000 Total P350,000 Total P 350,000 The Partnership is liquidated by installment. The first sale of non-cash assets With a book value of P150,000 realizes P100,000. How should the remaining cash be distributed ?
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.
The
Assets
Liabilities and Capital
Cash
P 30,000
Liabilities
P 50,000
Other Assets
320,000
Aethan, Capital
80,000
Ping, Capital
115,000
Moi, Capital
105,000
Total P350,000 Total P 350,000
The Partnership is liquidated by installment. The first sale of non-cash assets
With a book value of P150,000 realizes P100,000. How should the remaining cash
be distributed ?
Step by step
Solved in 3 steps
