A, B and C partnership had the following balances just before entering liquidation: Cash P10,000 Liabilities P190,000 Non-cash assets 300,000 A, Capital 30,000 B, Capital 40,000 C, Capital 50,000 Total P310,000 Total P310,000 A, B and C share profits and losses in the ratio of 3:4:3. Non cash assets were sold for P200,000. Liquidation expenses were P12,000. Assume that partner A is solvent up to P3,000 while B and C are both solvent and able to cover deficit in their capital accounts, any. What amount of cash should be paid to partner C
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.
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