Baldo, Celso, and Dado form a partnership on January 1, 2021, each partner investing P250,000 and agree to distribute profits equally. On August 1, 2021, Baldo was advanced P100,000 by the firm. On September 1, 2021, Celso made a loan to the firm of P200,000. Interest is to be charged on advances to partners and credited on loans by partners at the rate of 12%. Business is unsatisfactory and the partners decide to dissolve. Dado is allowed special compensation of P25,000 for managing the sale of assets and settlement with creditors. On December 31, all assets have been sold, outside creditors have been paid, and cash of P350,000 is distributed to partners. All partners are personally solvent and final settlement is made among partners on February 10, 2022. How much Celso should receive from the P350,000 cash?
Baldo, Celso, and Dado form a partnership on January 1, 2021, each partner investing P250,000 and agree to distribute profits equally. On August 1, 2021, Baldo was advanced P100,000 by the firm. On September 1, 2021, Celso made a loan to the firm of P200,000. Interest is to be charged on advances to partners and credited on loans by partners at the rate of 12%. Business is unsatisfactory and the partners decide to dissolve. Dado is allowed special compensation of P25,000 for managing the sale of assets and settlement with creditors. On December 31, all assets have been sold, outside creditors have been paid, and cash of P350,000 is distributed to partners. All partners are personally solvent and final settlement is made among partners on February 10, 2022. How much Celso should receive from the P350,000 cash?
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 47P
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Question
Baldo, Celso, and Dado form a partnership on January 1, 2021, each partner investing P250,000 and agree to distribute profits equally.
On August 1, 2021, Baldo was advanced P100,000 by the firm. On September 1, 2021, Celso made a loan to the firm of P200,000. Interest is to be charged on advances to partners and credited on loans by partners at the rate of 12%. Business is unsatisfactory and the partners decide to dissolve. Dado is allowed special compensation of P25,000 for managing the sale of assets and settlement with creditors. On December 31, all assets have been sold, outside creditors have been paid, and cash of P350,000 is distributed to partners. All partners are personally solvent and final settlement is made among partners on February 10, 2022.
How much Celso should receive from the P350,000 cash?
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ISBN:
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Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT