On January 3, 2020, LT, AM, ZP formed a partnership, agreeing to divide profits 2:1:1, respectively. On July 31, 2020, with operations going unfavorably, the partners decided to dissolve the firm. For that seven-month period, LT had capital contribution of P50,000 and drawings of P15,000; AM had capital contribution of P22,500 and drawings of P10,000; and ZP had contribution of P20,000 and drawings of P10,000. The amount of loss from operations is 30,000. Assuming that there is P65,000 cash available for distribution to partners. Determine the amount to be received by AM and ZP.
On January 3, 2020, LT, AM, ZP formed a partnership, agreeing to divide profits 2:1:1, respectively. On July 31, 2020, with operations going unfavorably, the partners decided to dissolve the firm. For that seven-month period, LT had capital contribution of P50,000 and drawings of P15,000; AM had capital contribution of P22,500 and drawings of P10,000; and ZP had contribution of P20,000 and drawings of P10,000. The amount of loss from operations is 30,000. Assuming that there is P65,000 cash available for distribution to partners. Determine the amount to be received by AM and ZP.
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 42P
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On January 3, 2020, LT, AM, ZP formed a partnership, agreeing to divide profits 2:1:1, respectively. On July 31, 2020, with operations going unfavorably, the partners decided to dissolve the firm. For that seven-month period, LT had capital contribution of P50,000 and drawings of P15,000; AM had capital contribution of P22,500 and drawings of P10,000; and ZP had contribution of P20,000 and drawings of P10,000. The amount of loss from operations is 30,000. Assuming that there is P65,000 cash available for distribution to partners.
Determine the amount to be received by AM and ZP.
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