A and B decided to liquidate their partnership. The partnership's records show the following information: Cash 20,000 Non-cash assets 80,000 Total assets 100,000 15,000 10,000 Liabilities Loan payable to Partner A Loan payable to Partner B A, capital (80%) B, capital (20%) Total liabilities and equity 17,000 36,000 22,000 100,000 All the non-cash assets were sold for P50,000. Selling costs of P5,000 were incurred on the sale. How much did B receive in the cash distribution to the partners?
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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