XIX The partnership of JJ, KK, LL, and MM is preparing to liquidate. Profit and loss sharing ratios are shown is the summarized balance sheet at December 31, 2019 as follows: Assets Cash........ Inventories.. Loan to KK.... Other Assets... Payment to Partners JJ a. P 97,500 b. P102,500 .P 100,000 100,000 10,000 255,000 P11,666.50 P15,000 Total..... P 465.000 During January 2020, the inventories are sold for P42,500, the other liabilities are paid, and 25,000 is set-aside for contingencies. Compute the total cash payment to partners and the cash that should receive by JJ and KK: KK P80,833.50 P82,500 Liabilities and Capital Other Liabilities.... JJ, loan..... JJ, capital (40%). KK, capital (20%). LL, capital (20%).. MM, capital (20%).. Total.... vv Payment. to Partners JJ c. P72,500 PO d. P67,500 PO P 50,000 50,000 100,000 160,000 KK P72,500 P67,500 50,000 55.000 P 465.000
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.
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