The following condensed balance sheet is prepared for Sammy and Joker, who share profits and losses in the ratio of 60:40, respectively: Other assets P720,000 Sammy, loan 32,000 Total P752,000 Accounts Payable P192,000 Sammy, capital 312,000 Joker, capital 248,000 Total P752,000 Required: Choose the correct answer with solution. The partners have decided to liquidate the partnership. If the other assets are sold for P770,000, what amount of the available cash should be distributed to Sammy? a. P310,000 b. P312,000 c. P342,000 d. P390,000
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
