The partnership of Benedict, Joshua and Constantine have asked you to assist it in winding up the affairs of the business. You compile the following information: a) The trial balance of the partnership on June 30, 2020 is: Debit Credit Cash 6,000 Accounts Receivable (net) 22,000 Inventory 14,000 Plant and Equipment (net) 99,000 Loan to Benedict 12,000 Loan to Constantine 7,500 Accounts Payable 17,000 Benedict, Capital 67,000 Joshua, Capital 45,000 Constatine, Capital 31,500 Total 160,500 160,500 b) Partnes share profits and losses as follows: Beneicts, 50%; Joshua, 30%, nd Constantine, 20%. c) The partners decided to liquidate ther partnersship by instalments. Cash is distributed to the partners at the end of each month. No interest on partner's loans accrues during liquidation. A summary of the July liquidation transaction follows: 16,500 collected on accounts receivable; balance is uncollecti
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
a) The
Debit Credit
Cash 6,000
Inventory 14,000
Plant and Equipment (net) 99,000
Loan to Benedict 12,000
Loan to Constantine 7,500
Accounts Payable 17,000
Benedict, Capital 67,000
Joshua, Capital 45,000
Constatine, Capital 31,500
Total 160,500 160,500
b) Partnes share
c) The partners decided to liquidate ther partnersship by instalments. Cash is distributed to the partners at the end of each month. No interest on partner's loans accrues during liquidation.
A summary of the July liquidation transaction follows:
16,500 collected on accounts receivable; balance is uncollectible
10,000 received for the entire inventory
1,000 liquidation expense paid
17,000 paid to outside creditors
8,000 cash retained in the business at the end of the month.
Detemine the share of Joshua on the July cash distribution.
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