Partners DDS and YELLOW who have been dividing profits and losses in the ratio of 6:4, respectively, decided to liquidate their DU20 partnership. The partners capital balances before liquidation were: DDS, P50,000 and YELLOW P30,000, respectively. After paying full the liabilities of P20,000, they have cash P50,000 to divide. How much is the loss on realization?
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.
Partners DDS and YELLOW who have been dividing
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