Partnership : It is an organization in which two or more person join together to do a business in which they all share profit and losses in an agreed ratio. One or more partners are acting in behalf of all partners. Each partner is responsible for the act of firm. Requirement-1: To Give: Calculate the loss. Total Loss (C+D) 76000 Calculation of Loss Sale of assets Assets Value (A) 126000 Liabilities Value (B) 78000 Assets cover liabilities of that amount So loss is here (A-B)= C 48000 Excess Liabilities over assets (D) 28000 Total Loss (C+D) 76000 Concept Introduction: Partnership: It is an organization in which two or more person join together to do a business in which they all share profit and losses in an agreed ratio. One or more partners are acting in behalf of all partners. Each partner is responsible for the act of firm. Requirement-2: To Give: Allocate the loss above. Loss Distribution (1:4:5) Partner 1 7600 Partner 2 30400 Partner 3 38000 Total Loss 76000 Concept Introduction: Partnership: It is an organization in which two or more person join together to do a business in which they all share profit and losses in an agreed ratio. One or more partners are acting in behalf of all partners. Each partner is responsible for the act of firm. Requirement-3: To Give: Calculate capital deficiency. Amount contribute by Partners (Capital-Losses) Partner 1 5100 Partner 2 16400 Partner 3 6500 Total Cash Required 28000

Connect Access Card for Financial Accounting: Information and Decisions

8th Edition

ISBN: 9781259662966

Author: John J Wild

Publisher: McGraw-Hill Education

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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 …

Partner Admission and Withdrawal

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