The ZODIAC Partnership has suffered financially due to poor results of operations for the past three years. Lyon, Virgo, and Aquarius share profits and losses 40%, 20%, and 40%, respectively. Disillusioned by the setback, the partners are considering the liquidation of their partnership. The following condensed partnership statement of financial position as of December 31, 2020, the end of the calendar year. As of December 31,, 2020. Zodiac PartnershipStatement of financial position. Assets; Cash: ₱30000, Inventories:₱40000, Furniture and Fixture: ₱300000, Total Assets: ₱370000. Liabilities and partner's equity: accounts payable:₱49000, lyon loan:₱20000 Lyon Capital:₱95000 Virgo Capital:₱100000, Aqarius capital:₱106000, Total Liabilities and Partner's equity:₱370000. Additional information: All of
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 ZODIAC
Step by step
Solved in 3 steps
