Partners Percy, May and Anne have decided to liquidate their partnerships. The partnerships Statement of Financial Position reveals the following: Assets Liabilities and CapitalCashP 250,000 LiabilitiesP 300,000Noncash Assets2,500,000 Percy, Capital (40%)900,000 May, Capital (40%)1,200,000 Anne, Capital (20%)350,000Total AssetsP 2,750,000 Total Liabilities & CapitalP 2,750,000All partners are personally solvent. Anne received P490,000 in cash in full settlement for her share in the partnership. What was the selling price for other assets?Please provide a good accounting form in showing the solution. Thank you!

Total Amount paid to all partners = Amount paid to Anne / Anne capital % = P490,000 / 20% =…

Answered: Partners Percy, May and Anne have…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...

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Partners Percy, May and Anne have decided to liquidate their partnerships. The partnerships Statement of Financial Position reveals the following:

Assets		Liabilities and Capital
Cash	P 250,000		Liabilities	P 300,000
Noncash Assets	2,500,000		Percy, Capital (40%)	900,000
			May, Capital (40%)	1,200,000
			Anne, Capital (20%)	350,000
Total Assets	P 2,750,000		Total Liabilities & Capital	P 2,750,000

All partners are personally solvent. Anne received P490,000 in cash in full settlement for her share in the partnership. What was the selling price for other assets?

Please provide a good accounting form in showing the solution. Thank you!

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.

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