The assets and capital of QRS Partnership at the end of its fiscal year on October 31,2021 are as follows: Assets Liabilities and Capital Cash 30,000 Liabilities 100,000 Receivable, net 40,000 Loan from S 20,000 Merchandise inventory 80,000 Q, Capital (30%) 90,000 Non-current Asset 140,000 R, Capital (50%) 60,000 Loan to R 10,000 S, Capital (20%) 30,000 The partners decide to liquidated the partnership. They estimated that the noncash assets other than the loan to R, can be converted into P200,000 cash over the two-months period ending December 31, 2021. Cash is o be distributed to the appropriate parties as it becomes available during the liquidation process. Compute the amount to be received by Q if P150,000 is available for first distribution?
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.
The assets and capital of QRS
|
Assets |
|
Liabilities and Capital |
||
|
Cash |
30,000 |
|
Liabilities |
100,000 |
|
Receivable, net |
40,000 |
|
Loan from S |
20,000 |
|
Merchandise inventory |
80,000 |
|
Q, Capital (30%) |
90,000 |
|
Non-current Asset |
140,000 |
|
R, Capital (50%) |
60,000 |
|
Loan to R |
10,000 |
|
S, Capital (20%) |
30,000 |
The partners decide to liquidated the partnership. They estimated that the noncash assets other than the loan to R, can be converted into P200,000 cash over the two-months period ending December 31, 2021. Cash is o be distributed to the appropriate parties as it becomes available during the liquidation process. Compute the amount to be received by Q if P150,000 is available for first distribution?
Please provide a good accounting form for the solution. Thank you so much!
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