On Dec 31, 201, the Modesto and Corpuz Partnership had the following assets, liabilities, and partners’ equity:Assets Liabilities Modesto Capital Corpuz Capital P 1,200,000 = P 150,000 P 600,000 P 450,000When the partners agreed to liquidate the business, the assets were sold for P900,000 and the liabilities were paid. Modesto and Corpuz share profits and lossess in a 2:1 ratio respectively.Required: What is the final cash distribution to each partner after liquidation. # 4On Dec 31, 201, the Modesto and Corpuz Partnership had the following assets,liabilities, and partners' equity:AssetsLiabilitiesModesto CapitalCorpuz CapitalP 1,200,000= P 150,000P 600,000P 450,000When the partners agreed to liquidate the business, the assets were sold for P 900,000and the liabilities were paid. Modesto and Corpuz share profits and lossess in a 2:1 ratiorespectively.Required: What is the final cash distribution to each partner after liquidation.

When liquidated, a partnership's assets are realised, liabilities are paid off and the remaining…

Answered: What is the final cash distribution to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On Dec 31, 201, the Modesto and Corpuz Partnership had the following assets, liabilities, and partners’ equity:

Assets Liabilities Modesto Capital Corpuz Capital P 1,200,000 = P 150,000 P 600,000 P 450,000

When the partners agreed to liquidate the business, the assets were sold for P900,000 and the liabilities were paid. Modesto and Corpuz share profits and lossess in a 2:1 ratio respectively.

Required: What is the final cash distribution to each partner after liquidation.

# 4
On Dec 31, 201, the Modesto and Corpuz Partnership had the following assets,
liabilities, and partners' equity:
Assets
Liabilities
Modesto Capital
Corpuz Capital
P 1,200,000
= P 150,000
P 600,000
P 450,000
When the partners agreed to liquidate the business, the assets were sold for P 900,000
and the liabilities were paid. Modesto and Corpuz share profits and lossess in a 2:1 ratio
respectively.
Required: What is the final cash distribution to each partner after liquidation.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.

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