On January 1, 2009, partners AAA, BBB and CCC, who share profits and losses in the ratio of 5:3:2, respectively, decided to liquidate their partnership. On this date, the partnership’s condensed balance sheet was as follows: Cash P 50,000 Other assets 250,000 P 300,000 Liabilities P 60,000 AAA, capital 80,000 CCC, capital 90,000 BBB, capital 70,000 Total P 300,000 On June 15, 2009, the first cash sale of other assets with a carrying amount of P150,000 realized P120,000. Safe installment payments to the partners were made the same date. How much cash should be distributed to each partner? AAA BBB CCC P 15,000 P 51,000 P 44,000 40,000 45,000 35,000 55,000 33,000 22,000 60,000 36,000 24,000
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.
On January 1, 2009, partners AAA, BBB and CCC, who share
Cash P 50,000
Other assets 250,000
P 300,000
Liabilities P 60,000
AAA, capital 80,000
CCC, capital 90,000
BBB, capital 70,000
Total P 300,000
On June 15, 2009, the first cash sale of other assets with a carrying amount of P150,000 realized P120,000. Safe installment payments to the partners were made the same date. How much cash should be distributed to each partner?
AAA BBB CCC
P 15,000 P 51,000 P 44,000
40,000 45,000 35,000
55,000 33,000 22,000
60,000 36,000 24,000
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