On January 1, 2016, the partners Carlo, Diego, and Edgar who share profits and losses in the ratio of 5:3:2, date the partnership condensed balance sheet was as follows: Cash 80,000 Other Assets 400,000 Accounts Payable 96,000 Carlo, Capital 128,000 Diego, Capital 144,000 Edgar, Capital 112,000 On September 20, all other assets are sold at 280,000. Assuming that all partners are solvent. Required: Prepare Statement of Partnership Liquidation (Lumpsum)
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, 2016, the partners Carlo, Diego, and Edgar who share
Cash 80,000
Other Assets 400,000
Accounts Payable 96,000
Carlo, Capital 128,000
Diego, Capital 144,000
Edgar, Capital 112,000
On September 20, all other assets are sold at 280,000. Assuming that all partners are solvent.
Required:
Prepare Statement of Partnership Liquidation (Lumpsum)
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