The balance sheet for Coney, Honey, and Money partnership shows the following information as of December 31, 2015; Cash ₱40,000 Liabilities ₱100,000 Other assets 560,000 Coney, Loan 50,000 Coney, Capital 250,000 Honey, Capital 140,000 Money, Capital 60,000 ₱600,000 ₱600,000 Profit and loss ratio is 3:2:1 for Coney, Honey, and Money, respectively. Other assets were realized as follows: DATE CASH RECEIVED BOOK VALUE January 2016 ₱120,000 ₱180,000 February 2016 70,000 154,000 March 2016 250,000 226,000 Cash is distributed as assets are realized. The total loss to Coney is: P60,000 b. P40,000 c. P20,000 d. None
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 balance sheet for Coney, Honey, and Money
|
Cash |
₱40,000 |
Liabilities |
₱100,000 |
|
Other assets |
560,000 |
Coney, Loan |
50,000 |
|
|
|
Coney, Capital |
250,000 |
|
|
|
Honey, Capital |
140,000 |
|
|
|
Money, Capital |
60,000 |
|
|
₱600,000 |
|
₱600,000 |
|
DATE |
|
BOOK VALUE |
|
January 2016 |
₱120,000 |
₱180,000 |
|
February 2016 |
70,000 |
154,000 |
|
March 2016 |
250,000 |
226,000 |
Cash is distributed as assets are realized.
- The total loss to Coney is:
P60,000 b. P40,000 c. P20,000 d. None
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